Inheritance Tax Planning
Inheritance tax can cost hundreds of thousands of pounds in the event of your death, however it is possible to legally avoid large proportions of it.
Even if you have a liability now, there is usually a range of options available, which would either reduce, or completely eradicate your tax bill.
In 2019/20 tax year, everyone is allowed to leave an estate valued at up to £325,000. Anything above this is taxed at 40% when you die. Also available is the main residence nil rate band of £150,000 which is available on the main residence if the recipient is a direct decedent (classed as children, step-children and grandchildren). This can give you a total allowance of £475,000.
As you can see, inheritance tax is a minefield of jargon and complicated accounting.
Do you have an inheritance tax liability?
If you would like assistance in calculating any potential liability please contact us.
We would be happy to discuss financial gifting, the various reliefs and trusts with you.