Inheritance Planning
Inheritance planning is the process of ensuring that your assets reach your intended beneficiaries, such as children and grandchildren, rather than ending up in the hands of others. With the help of a professional, you can create an inheritance plan that will help ensure that your assets are protected and passed on to your loved ones as you intended.
Careful IHT planning is all about passing as much of your estate as possible to who you want to receive it, rather than to HMRC.
It may come as a shock to discover that a large proportion of your wealth might be subject to Inheritance Tax (IHT) when you die.
This includes all of your assets such as the family home, investments, life assurance plans not in Trust and even old family heirlooms.
In the UK, inheritance tax (IHT) is a tax that is imposed on the value of an estate when the owner dies. The current IHT threshold in the UK is £325,000, which means that estates above this amount are taxed at 40%. There are some exemptions, such as gifts made to charity, gifts to a spouse or civil partner, and some business or agricultural property.
One way to save on inheritance tax is the use of trusts, which can protect assets from being lost to taxes, creditors, long-term care costs, and other potential threats. Trusts can also provide a way to control how assets are distributed and to whom, allowing you to specify who should benefit from your estate and under what conditions. For example, trusts can be used to exclude certain family members or to protect assets in case of divorce or bankruptcy.
Inheritance planning can help to reduce the impact of IHT by making use of these exemptions and by setting up trusts. Trusts can be used to hold assets such as property, investments, or business interests, and can provide a way to control how these assets are distributed after your death. Trusts can also be used to protect assets from creditors and to provide for family members who may be vulnerable or in need of special care.
Get your Inheritance tax liability down today, contact us below.