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Find out about inheritance tax liabilities (IHT) and key information on Wills, Trusts and Probate in Brent
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This page covers inheritance related issues of specific interest to residents of Brent, including:
- Average property prices in the borough
- How they affect your Inheritance Tax (IHT) liability
- Wills & Guardianship
- Trusts and how they can be used to protect your property
- Lasting Powers of Attorney (LPA) and how they can help you
About your property and Inheritance Tax
As one of London’s most populous boroughs Brent commands high property prices and, therefore, comes with above-average IHT liabilities.
As an individual living in Brent, you will pay 40% Inheritance Tax on the total value of your estate above your £325,000 allowance.
Married couples have a double allowance of £650,000.
Property values in Brent and inheritance tax
The average sold property price in Brent was £723,034 in 2019.
Taken in isolation (excluding other assets, like pensions and savings), this would create the following IHT liability:
Individual’s IHT liability – £159,214
Married couple’s IHT liability – £29,214
IHT liability based on more average property values
Looking at this in more detail, you can see that different types of properties carry vastly different IHT liabilities:
Flats in Brent – £425,160 (2019)
Individual – £71,645
Married couple – nil
Terrace in Brent – £723,034 (2019)
Individual – £159,214
Married couple – £29,214
Semi-detached in Brent – £743,443 (2019)
Individual – £167,377
Married couple – £37,377
Area of Brent with largest IHT liability
Brondesbury Park (£923,580)
Individual – £239,432
Married couple – £109,432
Area of Brent with lowest IHT liability
Wembley Central (£351,722)
Individual – £688.80
Married couple – £nil
Don’t forget that these figures are based purely on average property prices. If you have savings, pensions, investments and valuable possessions, such as art and jewellery, then your IHT bill will be considerably higher.
How to reduce your IHT liability?
There are ways you can reduce your IHT liability and lower the bill your family will have to pay in the event of your death. This can be done with sensible forward planning through Trusts.
In the first instance, you should speak to one of our Will consultants – or a financial adviser – who can advise you on the best course of action based on your individual circumstances.
Trusts and how they can be used to protect your property
You can insert a Trust into your Will to help manage your money in the event of your death. For example, you might want to add one to specify that your children inherit at 25 rather than the standard legal age of 18.
Another widely used Trust is called a Disabled Trust. This can be used to leave money to a disabled discretionary relative in a way that won’t have a negative impact on their disability allowances.
Wills & Guardianship
Having Guardianship in your Will is extremely important if you have children. Guardianship specifies to the courts how you wish your children to be cared for in the event of your death. Without this information, it is left for the Courts to decide and a judge will ultimately have the final say on who takes responsibility for them.
Lasting Power of Attorney
An LPA is a legal document that gives someone you trust the authority to act for you if you become too ill to do so for yourself. This includes things like paying bills, speaking to the bank and making important decisions about medical treatment.
It is important to get an LPA while you are healthy as it is not possible to get one if you are deemed to have already lost mental capacity.
Image of Wembley Stadium by Herry Lawford used under Creative Commons License