In 1789, Benjamin Franklin wrote “In this world nothing can be said to be certain, except death and taxes”. Most people feel uncomfortable talking about their own mortality, but it is important to be aware of the potential inheritance tax liability on your estate and seek advice on opportunities for mitigating the tax payable.
A survey carried out by Just Group found that over half of UK individuals aged 55 and over and either retired or semi-retired were not informed about the inheritance tax thresholds. Inheritance tax is a tax paid on a person’s estate on death at a rate of 40% over the inheritance tax threshold. Each individual has a Nil Rate Band of £325,000 and a further Residence Nil Rate Band of £175,000 applies if the deceased’s residence passes to direct descendants, however restrictions apply so these must be carefully considered. There are also exemptions and reliefs available in certain circumstances.
Inheritance tax planning can have a huge impact on the tax payable on your estate and will ensure that your loved ones benefit as much as possible from your wealth and property when the time comes.
If you would like to seek further advice from one of our specialist inheritance tax planning lawyers, please get in touch…
Over half of UK retirees unaware about IHT thresholdshttps://todayswillsandprobate.co.uk/over-half-of-uk-retirees-unaware-about-iht-thresholds/