Are the beneficiaries to your estate potentially liable for a large inheritance tax (IHT) bill?
Is your estate (including property) worth in excess of £325,000 (single) or £650,000 (joint)? If the answer is yes, then unless plans or provisions are made, your family could be hit with a large tax bill.
As of April 2017, the government is introducing an additional tax free allowance per person which can be used on their main residence, providing it is left to either their children or grand children. Initially each person will be able to offset £100,000 against IHT on their main residence, which is rising by £25,000 per annum to a maximum of £175,000 by 2020/21.
This will mean that as of April 6th 2020 a married couple with a house worth £350,000 will be able to leave it to their children or grandchildren without any IHT applicable.
If like most people in the UK, your main asset is your home, this could potentially make matters harder for your family on the event of you passing.
Did you know that before probate is granted, which is the point your will can be executed and your estate distributed, any IHT bill must be settled.
This leaves many families in a real dilemma because they have the asset in the house, yet they cant sell it to raise the cash.
Prudent financial planning can ensure that this is never an issue.
We also offer advice on:
- Full Financial Planning
- Trust & Estate Planning
- Offshore Investments
- Retirement Planning
- Critical Illness Cover
We think it is essential that people obtain professional and independent advice when it comes to pensions, investments and protecting their family. Given the choice available, financial products and services are a real maze, so using an IFA can really simplify things for you and ensure you have suitable investments, plans and policies.
The FCA does not regulate estate or inheritance tax planning.