A WILL DOESN’T STOP INHERITANCE TAX
Upon creating a Will, individuals typically expect their assets to be entirely transferred to their chosen beneficiaries. Regrettably, these beneficiaries might only receive 60% of the total value if the matter of inheritance tax hasn’t been taken into account.
Inheritance tax (IHT) was traditionally perceived as a levy on the wealthier echelons of society. However, with a threshold that starts at £325,000 for taxable wealth and property, coupled with escalating property prices, HMRC data indicates that a broader spectrum of individuals is now finding themselves ensnared by this tax.
Effectively strategising to ensure the efficient passage of your wealth can significantly impact the final amount your loved ones inherit. Numerous viable options exist, especially for those desiring to provide for their loved ones. These include gifting assets during your lifetime, contributing to their pension funds, or placing funds within a trust.
Each of the above avenues has the potential to diminish the inheritance tax burden on your beneficiaries. Given the intricacies of tax planning, seeking professional financial advice becomes pivotal—and often highly beneficial. Speak to Adam or Lee if you’re worried about your Inheritance Tax Planning.
Please note that the Financial Conduct Authority do not regulate Estate Planning.