Inheritance Tax Advice

When it comes to planning for your estate, inheritance tax advice is invaluable.

Is Inheritance tax advice expensive?

It doesn’t have to be expensive as most estates can easily be mitigated from the tax with some simple advice from a solicitor to alter your estate and will. This negates the need for inheritance tax advice from your financial adviser/accountant, as, for most people, the tax will not apply after this restructure of your estate.

Will I pay inheritance tax?

For most of those who fall outside the category above, inheritance tax advice is a very simple process, and ultimately, you may not have to pay a penny towards inheritance tax at all. Thousands of pounds are needlessly paid in inheritance tax each year, and there are ways that you can benefit from inheritance tax relief through good inheritance tax advice from a specialist independent financial adviser.

You have worked hard for your money so don’t let the taxman take more than they are due!

Our Fee Guarantee: You won’t pay any fees unless we can help you

Contact your FT award winning inheritance tax adviser for free on 0800 0112825 or fill in the enquiry form and we will be happy to help.

What is inheritance tax?

Inheritance Tax is tax (40%) that the government charges on the value of your estate above the nil-rate threshold (£325,000 in 2010-2011) which is transferred to another. The nil-rate threshold is anything within your estate which is valued up to £325,000.

What is my ‘estate’?

Your estate is defined as anything that you have in savings, cash, investments, life insurance not in trust, any property you own, your car, and any assets you have given away before your death in the last seven years. The final value of your estate is determined by these values minus funeral expenses and any debt outstanding. As part of our Inheritance tax advice we will assist with a full valuation of your estate.

Will I have to pay inheritance tax?

If your estate value is below the inheritance tax nil-rate threshold above, your beneficiaries will not have to pay inheritance tax. If your estate is higher than the threshold then you are liable to pay 40% of the difference. For example, if the value of your estate is £500,000, no tax is payable on the first £325,000, this means that 40% of the remaining £175,000 estate is liable to tax, with the inheritance tax payable being £70,000. Once again, our inheritance tax advice service will calculate how much tax you will have to pay.

Will my spouse have to pay inheritance tax on my estate?

On death, if your estate passes to your spouse or UK civil registered partner, they will be exempt from paying inheritance tax as there is an inter-spouse exemption policy. However, on second death, your partner will receive the full benefit of your nil-rate threshold on top of their own, so their inheritance tax threshold will now be doubled; the nil rate threshold therefore would be increased to £650,000 for the second death. It is essential you receive inheritance tax advice on this as it may be worth using some or all of the nil rate band on first death to utilise other trusts later.

How do I avoid paying inheritance tax?

Sometimes, even if your estate is valued at being over the nil-rate threshold you can pass on assets to others without having to pay inheritance tax. One way to receive relief and exemption from paying inheritance tax is to use whatever exemptions you can. For example you could pay out £3000 annually as a single gift or several gifts which equate to that amount. The first £3000 given away in a year is exempt from inheritance tax as it is not classed as part of your estate.

Seek Inheritance tax advice about making gifts out of normal expenditure as many people can give large amounts of capital away each year.

See Inheritance Tax Solutions for more inheritance tax relief options and exemptions and you could also visit our Inheritance tax tips for some further ideas.

Do I need inheritance Tax Advice?

Inheritance tax planning is different for different people as each circumstance is unique. Many people put off Inheritance tax advice as they believe the only way to mitigate the tax is to pay an insurance policy or give all their capital away. This is a common misunderstanding.

It is important that you speak to a professional and seek independent inheritance tax advice to ensure that you get the right inheritance tax solution to ensure you don’t pay any tax you could potentially be exempt from.

Our award winning independent financial advisers will work with you to assess if you will be liable to any tax and then discuss with you how this can be mitigated. We know all the solutions available and your dedicated adviser will stay with you from start to finish to mitigate the inheritance tax in the most cost effective way.

Fee Guarantee: You won’t pay any fees unless we can help you

Contact FT award winning Worldwide Financial Planning on 0800 0112825 or fill in the enquiry form and send to us for more information.