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Get all the facts about average inheritance tax liabilities (IHT) and key information on Wills, Trusts and Probate in Lewisham.
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This page covers inheritance related issues of specific interest to residents of Lewisham, 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 property in Lewisham and Inheritance Tax
House prices went up by 11% in Lewisham last year, with significant implications for local homeowners when it comes to IHT.
Since 2014 the cost of an average property has risen by 24%.
Average property values (2017)
- Flats – £360,779
- Terraced Houses – £625,296
- Semi-detached – £733,553
IHT liability based on average property values
Based on these valuations, we can work out the average IHT liability. IHT is calculated at 40% over the Nil Rate Band. This currently stands at £325,000 per person.
So, for a single person, the IHT liability on these property types would be:
- Flats/apartments – £14,311
- Terraced houses – £120,118
- Semi-detached – £163,421
Please note: these figures are based on average property prices. If you have savings, pensions, investments and valuable possessions, such as jewellery and art, then your IHT bill could be considerably more.
How can I reduce my IHT liability?
All London boroughs are way above the national average due to the price of property in the capital.
Although IHT is payable on all Estates, there are steps you can take through your Will to help reduce this figure and make it more manageable for your family when you pass.
In the first instance, you should speak to one of our Will consultants who can advise you on the best course of action based on your individual circumstances.
Other ways a Will can be useful
Wills & Guardianship
Guardianship specifies to the courts how you wish your children to be cared for in the event of your death. Without this information, the Courts are left to try and decide what will be best for them.
Although they make every effort to take your children and family’s advice into account, ultimately a judge will decide who they live with and who is responsible for them. Guardianship ensures that your wishes are fully recognised by the courts.
Property Protection Trusts
Insert a Trust into your Will and you’ll be able to exert much more control over money after your death. For example, you might want to specify that your children inherit at 25 rather than the standard legal age of 18.
You can also use them to ensure that your half of the property is held in Trust for your children, so it never passes into the hands of your widowed partner’s new spouse.
Another widely used Trust is called a Disabled Trust. This can be used to leave money to a disabled relative in a way that won’t have a negative impact on their disability allowances.
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.