40 Berners Street Fax 020 7907 4525
London W1T 3NA info@inspiredadvice.co.uk
Copyright © Inspired Advice Limited Registered office 12 Old Bond Street, Mayfair, London W1S 4PW Registered in England and Wales No 06164688
Inspired Advice Limited is an appointed representative of 2020 Financial Services Ltd which is authorised and regulated by the Financial Services Authority
What is Inheritance Tax?
Inheritance Tax is payable at 40% on the value of your estate above your Nil Rate Band allowance (£312,000 in 2008/2009) at the time of your death. Your estate is valued as the total of everything you own, including those things which you have only a share in or simply derive benefit from (including income) less any amounts you owe.
This tax must be paid by those you leave your estate to when you die. If you make no plans in advance, this liability may need to be met through the sale of assets before the inheritance is passed on.
This could mean simply selling shares or closing bank accounts but, if such liquid assets are not available, could instead mean your house or even a treasured heirloom. And this all has to happen within six months of death, so the price obtained may fall short of the sentimental value.
How Can Inspired Advice Help?
Thankfully, there are ways to plan your affairs to reduce the amount paid to the Chancellor on your death. We can help you minimise your liability to Inheritance Tax by comprehensively reviewing your assets, your objectives and your liabilities. Once this had been completed we would be in a position to provide you with recommendations on the best course of action. This could include a combination of the following methods:
Use of exemptions
Direct lifetime gifts
Lifetime gifts via a trust (including discounted gift trusts and loan trusts)
Arranging life cover written into trust
Use of equity release for illiquid assets
However, for such planning to be affective it is important to start looking at this issue as early as possible. For more information, without obligation, call us on 020 7907 4520 or use our contact form.
Tax advice is not regulated by the Financial Services Authority