Inheritance Tax (IHT) is no longer the preserve simply of the rich and famous. More and more people are finding themselves within the threshold IHT applies.
To establish whether or not IHT is applicable in your circumstances, you need to aggregate every asset in your estate to include bank accounts/ building society accounts, savings, investments, properties, insurance policies, shares and any other assets of value.
You will also need to consider whether you have made any:
- PETs (Potentially Exempt Transfers)? PETs are gifts made within 7 years of your death and will be included as part of your estate when determining IHT.
- GROBs (Gift with a Reservation of Benefit). If so, these will also be considered when determining IHT.
If the value of your estate exceeds the Nil Rate Band (£325,000) you may find you are liable to Inheritance Tax that is currently charged at 40%.
Taking legal advice to prepare your Will is a good opportunity to ask for advice generally regarding mitigating your Inheritance Tax liability.
We can advise you on:
- Any available Allowances
- Whether you are entitled to claim the transferrable Nil Rate Band (NRB) which may potentially increase the NRB from £325,000 to £650,000
- Tapering Relief
- Making efficient Lifetime gifts/outright gifts
- Creating a Trust, etc