Inheritance tax is charged at 40% on
any Estates exceeding the ‘nil rate’ band,
currently £300,000. With the increase in property
prices this is no longer just a tax on the wealthy.
This can be devastating for beneficiaries
who may find themselves inheriting less than the Exchequer
when the assets of an Estate are finally distributed.
click
to englarge
Estate
of £500,000
Estate
of £750,000
Estate
of £1,000,000
Estate
of £2,000,000
Married Couples often forget that they
each have a ‘nil-rate’ band effectively
giving them a current inheritance exemption of £600,000.
The first place to start with Inheritance
tax planning is with the writing of effective wills.
This needs to be effected to take account of each
‘nil-rate’ band and may involve the redistribution
of assets.
Ashlea Financial Planning Ltd has links
with legal experts who can give advice on suitable
wills, after which other planning can be introduced
to mitigate the Inheritance tax further.
NOTE:
The information provided above is not regulated by
the FSA
