Inheritance Tax
Inheritance Tax (IHT) is levied on a persons estate if they are worth in excess of £325,000. IHT is currently charged at 40%. There is no tax payable between spouses on first death.
For example:
| Estate value |
£525,000 |
|
| Less allowance |
£325,000 |
|
| Estate liable for tax |
£200,000 |
|
| Tax at 40% |
£80,000 to pay |
|
DO MY BENEFICIARIES HAVE TO PAY IT?
YES - IF YOU DO NOTHING ABOUT IT
NO - IF YOU GET PROFESSIONAL ADVICE (You can reduce the amount payable)
WHAT CAN I DO ABOUT IT?
If you are a married couple or civil couple.
If you die first, the law allows you to pass on your £325,000 IHT allowance to your partner, for them to use as they wish.
However, the following points are worth considering:
You may not wish for your partner to have total control over who benefits from your personal IHT allowance.
You may wish to set up a discretionary trust within your will, which allows your children or other beneficiaries, to each have access to your IHT allowance, to be distributed as the trustees see fit. You choose the trustees.
BE SURE - MAKE A WILL
For more information or to book an appointment, please call 01225 400060 |
