Inheritance tax is charged at 40% on any Estates exceeding the 'nil rate' band, currently £325,000. 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.

Married Couples often forget that they each have a 'nil-rate' band effectively giving them a current inheritance exemption of £650,000.

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.