Inheritance Tax planning
After a lifetime of paying taxes and building up assets, it is a shame that even after death you may still have tax liability.
Inheritance Tax (IHT) is a tax on the total value of a deceased person's estate, that exceeds the IHT nil rate band. For tax year 2008/09 this is £312,000 and IHT will be charged at 40% on any amounts in excess of this.
One of the main reasons that families get caught out by IHT is that they do not consider themselves to be wealthy enough.
However, it’s not just your house and cash savings that will be taken into account, all of your possessions are also included, right down to your jewellery.
To minimise your beneficiaries’ exposure to IHT you will need to calculate this value in advance and plan how to offset any potential tax bill.
We can advise you on a number of solutions for any IHT problems, from tax mitigation to insuring any potential tax liability.
The above information is based on how we understand tax rules now. These may change in the future.
To review your specific Inheritance Tax situation please call us on 0800 980 6340 or contact your local Financial Consultant using the 'need advice' locator below.
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