Protect your estate and manage your tax liabilities
During the course of having your Will drafted, you should consider whether your estate will be subject to inheritance tax on your death and if so, how will it be paid?
You may be able to reduce your inheritance tax liability by seeking legal advice.
Currently, the inheritance tax threshold Nil Rate Band (this is the total amount tax free) is £325,000. If you are married and leaving assets to each other, as a couple you have an allowance of £650,000 between you before inheritance tax is payable. Generally, all assets over this amount are taxed at 40%.
Support with estate and tax planning
If your estate will be subject to inheritance tax, there are steps that can be taken to minimise the liability. It is important to seek legal and financial advice on these matters.
We are able to assess your personal circumstances and provide inheritance tax advice if we feel this is necessary.
Our advisors are able to provide full HMRC tax compliance service in estate administration and ensure the most tax-effective devolution of your estate.
Due to a recent change in the law there is now an additional inheritance tax relief, namely the Residential Nil Rate Band (RNRB). This relief will apply to individuals if:
- The individual dies on or after 6 April 2017;
- The individual owns a home, or a share of one, so that it’s included in their estate;
- The individual’s direct descendants such as children or grandchildren inherit the home, or a share of it; and
- The value of the estate is not more than £2 million.
If the above applies to you, namely you are leaving your home or a share of your home to your children or grandchildren, you will be able to claim the RNRB.
For deaths in the following tax years, the Residential Nil Rate Band for each individual will be:
- £100,000 in 2017 to 2018;
- £125,000 in 2018 to 2019;
- £150,000 in 2019 to 2020; and
- £175,000 in 2020 to 2021.
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