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Resources / Further Information
We have a wealth of information available for you to help inform your decision. Feel free to download the documents below and print them off to read at your leisure.
For unmarried couples …
If your joint assets are above £312,000, an inheritance tax saving pair of mirrored wills can currently remove up to £125,000 of liability from your beneficiaries at second death. If tenancy in common is not an option, perhaps you are single or a widow, lifetime trusts can be used to help minimize inheritance tax but it is important to take advice from a specialist – contact us.
If you are married …
If you are married, or have undergone a civil partnership you can now transfer over your deceased spouse’s tax allowance, providing you in effect with the right to benefit from 2 nil rate bands.
For clients with an estate over £700,000 …
For clients with a joint estate over £700,000, the Revocable Life Interest Trust has proven to be extremely tax efficient with regard to estates that exceed 2 nil rate bands and are still liable for 40% Inheritance Tax.
Should your estate be under this ‘nil rate band’ it will then be classed as an ‘excepted estate’. Probate will still have to be obtained but no Inheritance Tax will apply, unless large value gifts have been made (see gifts).
For single or widowed clients …
For single or widowed clients much can be done to help reduce any Inheritance Tax burden, through appropriate and careful financial planning. Please contact us for a recommendation.
A common misconception is that IHT can be avoided by giving away the bulk of your estate before you die. However the Inland Revenue will take into account any large value gifts that have been made by you and tax them accordingly.
In tax terminology, gifts are meant as a sum of money or a portion of your estate given away before death, often referred to as a ‘potentially exempt transfer’ or PET. Provided that 7 years have elapsed between the time of making the gift and your death, then no Inheritance Tax is payable.
However, if death occurred during this 7 year period, and Inheritance Tax is payable on the estate, a discount applies to the tax liability that applies to that gift, for example: 0-3 years 100% chargeable, 3-4 years 80% chargeable, 4-5 years 60% chargeable, 5-6 years 40% chargeable, 6-7 years 20% chargeable.