Inheritance Tax Planning
Years ago, Inheritance Tax only really affected the very rich, these days, with the growth in house prices in recent years, more and more families are facing tax bills.
Broadly speaking on death, an individual’s estate is valued, if the value exceeds the nil rate band of £325,000 then tax at 40% is payable on the excess. It is now possible to claim the nil rate band of a deceased spouse if it was not used on their death.
The tax is payable before the estate is released, so beneficiaries who do not have the means often have to take out loans to settle the bill, it maybe that assets would then need to be sold to repay the loan.
With some forward planning it is possible to reduce or even eliminate inheritance tax liabilities.
This planning could involve some various exemptions, making gifts or funding life assurance to provide for the eventual bill.
For information or to discuss this further, please contact our Financial Services Department on 01473 408422 or ifa@wmibl.co.uk
