Home » Inheritance Tax Planning
When we work hard to build a nest egg for our futures, thoughts often turn to how we can pass this money to loved ones when we are no longer here, yet spiralling house prices have snared many of us in the Inheritance Tax (IHT) threshold. IHT is no longer a tax exclusive to the prosperous, it requires careful inheritance tax planning for many to reduce liabilities to minimise the amount of tax owed.
IHT is levied at 40% on estates over £325,000 and £650,000 for couples. Still, there are several options our specialist team can provide you with so you can act now and in the future, including:
• Gifts of cash, property, art, etc can potentially be exempt from IHT.
• Use your £3,000 per year personal allowance to give away money.
• Residence nil band rate – by leaving your main home to direct descendants, you can increase your IHT allowance by another £175,000.
• Setting up a trust enables you to reduce liability and ensure the rightful beneficiaries receive money at the right time.
• Business relief on IHT for 50% or 100% of some assets.
It’s never too early to start planning how to divide up your estate. At Fentimans Solicitors, we can help you calculate the total value of your estate, including all property, vehicles, jewellery and investments, to find ways to reduce liability. The taxation laws around IHT are complex, so it pays to have expert advice to ensure you keep as much of your estate as possible in your family. We can help you find the perfect bespoke structure for you from the myriad of tax planning options available. If you live in Solihull, Knowle or Dorridge, contact us today for more information. Call our team on 01564 779459 or click here to enquire.