Without proper inheritance tax planning, your family could be faced with a large tax liability when you die, considerably reducing the amount your loved one’s receive. If you die and leave an estate valued at over £325,000 (currently) your beneficiaries may be liable to pay inheritance tax at 40% of the value of your assets above that amount.
By taking advice on Inheritance Tax planning, you may be able to:
- Reduce Inheritance Tax
- Keep your assets within your family
- Protect your assets from the need to fund long-term care in later life
- Protect your Inheritance Tax allowance if you were to die and your partner were to re-marry
- Protect assets passing to children/grandchildren from the risk of their becoming bankrupt or divorced.
You can receive advice from W. Davies on a number of methods which may help in reducing Inheritance Tax liability on your death. This may involve the creation of Trusts during your lifetime or the preparation of a tax-efficient Will. If you already have a Will, we can advise you on whether there are any changes you ought to consider making, to help reduce the inheritance tax liability of your estate on your death.
Past Finance Acts have created ‘hidden’ tax implications within Wills. For example, if you are passing some of your estate to your children or grandchildren and those children or grandchildren are still minors, this can create inheritance tax implications until those grandchildren receive their inheritance or if you are delaying someone's inheritance until a specified age then this can create disadvantageous tax implications. Numerous other income and capital gains tax issues must also be considered. If you have any form of Trust within your Will, we recommend that you speak with one of our specialised Solicitors to check the tax position carefully.
Within the Private Client Department, our Solicitors have a fountain of knowledge and experience in dealing with inheritance tax planning, advising clients on various reliefs and tax-saving mechanisms to reduce the inheritance tax against their estate.
For more information about this please contact Alexandra Milton on akm@wdavies.com or Fiona Gould on feg@wdavies.com
