Lifetime Estate Planning

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Inheritance Tax

Inheritance tax is a tax which is paid on the value of all you own when you die. Unless you have been “lucky enough” to have heard about it in your lifetime it is one of those taxes which only your loved ones will find out about when they have to pay a large tax bill out of the very inheritance you wanted to give them.

The rules surrounding inheritance tax are complex and it is for this reason it is important to discuss your situation with Lifetime Estate Planning, as only then will you be able to understand its potential effects on you and whether your loved ones will lose out on some of their inheritance.

The summer Budget 2015 brought good news for those whose wealth is tied up in their family home as chancellor George Osborne announced the introduction of an additional nil rate band for a person’s main residence.

The existing nil rate band of £325,000 per person or £650,000 per couple, on which 40% IHT is not paid, will remain the same. From 2017/18 an additional main residence band of £100,000 per person will be introduced, which will increase to £125,000 in 2018/19, to £150,000 in 2019/20 and to £175,000 in 2020/21.

In 2020/21 this means a house worth £1 million could be passed on tax free. But this doesn’t mean you no longer have to think about tax planning as there are a number of pitfalls you have to avoid in order to make sure you’re eligible for the full amount.

Please contact us to make an appointment where we can discuss your personal situation in detail and provide you with unbiased impartial advice.