It was Benjamin Franklin who famously said that there were only two certainties in life - death and taxes - and that was before inheritance tax (IHT) was conceived in 1989.
Today, any estate with chargeable assets over £325,000 will be liable for inheritance tax at 40% which is a mighty burden to leave behind when your estate could be working harder to help your loved ones.
The good news is that there are steps you can take to mitigate the inheritance tax burden on your estate during your lifetime.
Naturally, every situation is different, and some techniques are more costly to implement than others, but essentially we can consider every aspect of your circumstances and recommend the course of action that ensures the right people benefit from your property.
Typically our work involves:
- Getting the full picture of your situation and financial circumstances
- Preparing a forecast of the IHT liability
- Suggesting various options to reduce the IHT liability
- Discussing the pros and cons of all the options with you
- Liaising with specialist solicitors or financial advisors where appropriate
IHT should never be looked at in isolation. There are many traps for the unwary, and the impact of other taxes such as capital gains tax, stamp duty land tax and even VAT must also be considered.
If you’d like to find how we can help you with your inheritance tax planning, call us today on 01539 720465