Benjamin Franklin once said that, “nothing is certain but death and taxes”, and thanks to inheritance tax, they’re not only certain – they’re intrinsically linked.
Inheritance tax is currently charged at 40 per cent, and is payable on your estate once your net assets exceed the nil rate band, which is announced each budget. For married couples and civil partners, any unused percentage of the available allowance from the estate of the first to pass away, may be claimed when the second spouse dies.
Once mainly applicable to high net worth individuals, home ownership and rising property values have meant that more and more people are being subjected to Inheritance Tax (IHT) every year.
Planning to reduce IHT is not just about saving money. It’s about helping you to preserve your wealth in the most efficient way.
Building up wealth is never easy. It can, however, be relatively easy to manage the potential IHT charge on your wealth, using tools such as:
Everyone should have a Will. A Will ensures that your wealth is distributed according to your wishes and provides clarity and certainty over the disposal of your estate. It can also help manage the IHT arising on your estate.
When you are looking to reduce your taxable estate, the first thing you should consider is whether you can afford to distribute any of your assets before you die in the form of gifts.
A trust is a powerful estate planning tool and the most common form of wealth structure.
At Holborn Assets we have the depth of experience and resources to help you understand exactly how IHT could affect you and to discuss solutions that can help you protect your wealth for future generations.
To find out more about Estate Planning please speak to a qualified Holborn Assets adviser.