Wealth Preservation Through The Generations
We all like to hang on to what we have, especially everything we have worked hard for. We also like to know that it will go to the people we want it to go to after we are gone.
You have worked hard to save your money. You have worked hard to make your money grow. But isn't galling to see your hard earned money not go where you want it to go to. Making a will is an essential part to this particular puzzle, but it is only a part.
So What Is Inheritance Tax?
Inheritance Tax is usually paid on an estate when somebody dies. It's also sometimes payable on trusts or gifts made during someones lifetime. The tax is payable at 40% on the amount over the Nil Rate Band (currently £325,000 2017/18) or 36% if the estate qualifies for a reduced rate as a result of a charitable donantion.
Since October 2007, married couples and registered civil partners can effectively increases the threshold on their estate when the second partner dies - to as much as £650,000 in 2017/18. The executors or personal representatives must transfer the first spouse or civil partner's unused Inheritance Tax threshold to the second spouse or civil partner when they die
If you have an estate which will suffer from Inheritance Tax, you may be resigned to the fact that the treasury, after taxing you on everything you earn, is going to take another potentially large slice of your estate before it goes to your loved ones.
How You Can Plan
There are many things you can do to help mitigate and in some cases avoid unnessecary tax.
At Tailored Wealth we have specialised in Inheritance Tax planning since 2000 and ensured that our clients do not pay more tax than necessary without restricting their lifestyle. Part of this planning is making sure any reliefs that can be used are utilised before looking at the various trusts that can make a significant saving in this area.
This is a complex area so please get in touch if you are concerned about Inheritance Tax
Inheritance Tax Planning and Estate Planning is not regulated by the Financial Conduct Authority
The value of investments and pensions and the income they produce can fall as well as rise. You may get back less than you invested
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK