Will You Pay Too Much Inheritance Tax?
Inheritance Tax (IHT) Inheritance Tax (IHT) is levied on the value of a person's estate at the time of their death.
It is often classed as a voluntary tax because through careful planning, over time, it is possible to reduce the likelihood of the charge or eliminate it completely.
If this is the case how did the treasury manage to obtain around £3.
3 billion from IHT during 2013/14? 1.
Possibly people think that IHT is only payable by the rich.
The 'nil rate band' (the value at which zero IHT is payable)is actually only £325,000 per individual, (it has remained frozen since 2009/10 and will remain so until at least 2016).
If you own property it is easy for that one asset to take up the whole of this allowance.
After this allowance is reached any excess is charged at 40%! 2.
Possibly people think that IHT planning is something that needs to be done when they are closer to dying.
Nothing could be further from the truth.
The best planning is started as early as possible, many of the routes to reduce IHT need a time frame of 7 years for the assets to fall outside an individual's estate.
3.
Possibly people think that the only way to reduce IHT is to give away assets; the understandable concern being that these could be needed later in life.
Yes there are gifts that can be given each year that are final but there are many ways to allocate money away from your estate without losing total control or access to it, just in case your circumstances change.
4.
Possibly people find the whole subject too confusing - nil rate band, settlors, gift into vivos, discretionary trust, gift and loan scheme these are not terms that most people are used to dealing with on a regular basis and what is not familiar can be scary enough to leave on the 'too hard to deal with' pile.
Death and taxes are still a taboo subject in many households, but this is one issue where ignorance is not bliss it can be very expensive You need to talk to Independent Financial planners that specialise in advising clients that want to build and maintain their wealth.
Those that want to leave a legacy for their children and their children's children.
How lovely to be able to see your family enjoy the financial benefits that good multi-generational planning provides during your lifetime rather than waiting until death.
It is often classed as a voluntary tax because through careful planning, over time, it is possible to reduce the likelihood of the charge or eliminate it completely.
If this is the case how did the treasury manage to obtain around £3.
3 billion from IHT during 2013/14? 1.
Possibly people think that IHT is only payable by the rich.
The 'nil rate band' (the value at which zero IHT is payable)is actually only £325,000 per individual, (it has remained frozen since 2009/10 and will remain so until at least 2016).
If you own property it is easy for that one asset to take up the whole of this allowance.
After this allowance is reached any excess is charged at 40%! 2.
Possibly people think that IHT planning is something that needs to be done when they are closer to dying.
Nothing could be further from the truth.
The best planning is started as early as possible, many of the routes to reduce IHT need a time frame of 7 years for the assets to fall outside an individual's estate.
3.
Possibly people think that the only way to reduce IHT is to give away assets; the understandable concern being that these could be needed later in life.
Yes there are gifts that can be given each year that are final but there are many ways to allocate money away from your estate without losing total control or access to it, just in case your circumstances change.
4.
Possibly people find the whole subject too confusing - nil rate band, settlors, gift into vivos, discretionary trust, gift and loan scheme these are not terms that most people are used to dealing with on a regular basis and what is not familiar can be scary enough to leave on the 'too hard to deal with' pile.
Death and taxes are still a taboo subject in many households, but this is one issue where ignorance is not bliss it can be very expensive You need to talk to Independent Financial planners that specialise in advising clients that want to build and maintain their wealth.
Those that want to leave a legacy for their children and their children's children.
How lovely to be able to see your family enjoy the financial benefits that good multi-generational planning provides during your lifetime rather than waiting until death.
