Planning to reduce Inheritance Tax is an important part of your overall management of your financial affairs during your lifetime, to protect your hard earned wealth and provide for your family on your death. The ability to transfer any unused balance of the nil rate band between spouses and civil partners on death has improved the situation, but there still remain plenty of circumstances where planning in advance can substantially reduce the final liability.
This is particularly important for property owners, considering that the Government announced a further freeze on the nil rate band at £325,000. This could lift an estate of £1m out of IHT with careful planning
This is very hard to get and will depend on how you manage your holiday lets. Let us help you plan.
HMRC are challenging the principle of 100% relief for business premises for Inheritance Tax (IHT).
Where a person dies owing monies borrowed and secured against such business premises, HMRC are demanding to know the purpose for which the finance was used before deciding on eligibility for the IHT exemption.
If you think you are at risk you should contact us to let us advise you on this subject.
Have you made any specific charitable bequests in your will? Did you know that by changing this slightly it might be possible to reduce Inheritance Tax on your whole estate. Gifts to charity in your will could produce significant tax savings.
If you think this applies to you please contact us for advice.
To save costs many people put off making a Will, or draft a simple Will without taking proper advice. The result can be very expensive in the long-run in terms of care home fees and Inheritance Tax.
Consider putting at least some assets in trust, the assets in the trust are ring-fenced and cannot be counted in the means-test or swallowed by the cost of care home fees. It makes sense to take professional advice before setting up a trust or planning to avoid inheritance tax. It can be very costly for your family to pick up the pieces after you have died. Cutting costs in this complex area will inevitably prove penny wise and pound foolish.
The world has turned upside down and now you are able to leave your pension in a will IHT free.
With the freezing of the IHT Nil Rate Band IHT planning has never been more important.
This also makes it a very good time to look at doing a Discounted Gift Trust.