Protecting your loved ones
It’s likely that over the course of your life you will have built up money and assets that you will want to leave to your loved ones. It’s important to remember that when you die, your estate could be subjected to Inheritance Tax if it’s worth more than the ‘tax threshold’. Your estate consists of all the assets you own including property and shares,
The government has set the inheritance tax (IHT) threshold at £325,000 for each person, meaning that married couples/civil partners can have a joint estate of £650,000 before any tax is payable (this threshold is likely to stay in force until April 2018), In most cases tax is currently payable at 40% of everything over the tax threshold.
Last Will and testament document
Fortunately, if your estate is likely to be over the threshold, with some help and some careful tax planning there are ways to minimise inheritance tax and make sure your loved ones get the maximum benefit of your estate.
The important word here is ‘planning’, as there are rules that can take several years to take effect and leave you in the best position with regards to the tax due on the assets you leave behind.
Speaking to an independent financial adviser will help you to find out more about how to minimise the inheritance tax on your estate.
The Financial Conduct Authority does not regulate Taxation advice and Will Writing.