INHERITANCE TAX PLANNING
What is Inheritance Tax and how does it affect me?
Inheritance Tax is the money which has to be paid to the government when you die if your assets are worth more than the Inheritance Tax threshold.
The Inheritance Tax threshold is currently set at £325,000 and tax is payable at 40% on the amount over this threshold, or 36% if the estate qualifies for a reduced rate.
If your assets are worth more than the Inheritance Tax threshold, then it is important that you get in touch to find out how we may be able to assist you put protection in place to help you and your family avoid paying more tax than you need to.
Who is responsible for paying Inheritance Tax?
Generally speaking, when you die the Executor of your Will or a family member who is granted Letters of Administration will be responsible for paying Inheritance Tax owed using funds from your estate.
Your solicitor will be able to provide further information about your specific situation.
How will my estate be valued for Inheritance Tax calculations?
To find out if Inheritance Tax is due on an estate it must be valued. This involves adding up the value of all assets including property, possessions, savings, insurance policies and investments and then deducting any debts and funeral expenses.
The valuation will also include your share of any jointly owned assets and the value of any assets which you hold in trust.
The value of money or property given away during your life may also be relevant.
What exemptions apply to Inheritance Tax calculations?
It may be possible for you to pass on assets without having to pay Inheritance Tax. Examples include:
- Spouse or civil partner exemption
- Charity exemption
- Exempt transfers
- Annual exemption
- Small gift exemption
- Wedding and civil partnership gifts
- Business, Woodland, Heritage and Farm Relief
How can JWK Solicitors help me?
Our team of highly qualified and experienced Solicitors can help you navigate the complexities of Inheritance Tax and help you plan your finances to minimise the amount of tax your loved ones will have to pay on your death.
JWK can help you. Get in touch today
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