Most of our clients want to make sure that they have made adequate provision for their loved ones.
However, inheritance tax or a poorly-drafted Will could dilute any intended legacies, which is why it is important to get expert advice that is easy to understand.
In the event of your death, your beneficiaries could pay inheritance tax at 40 per cent on the value of your estate above £325,000.
For example, if your estate, including the value of your home is worth £500,000, that could mean a tax bill of £70,000.
However, things are set to change. A new £1million allowance is soon to be introduced for couples who want to pass on property wealth.
An additional allowance for family homes will be gradually introduced on top of the existing tax-free band from 2017, taking the total to £1million by 2020, although the wealthiest estates will not qualify for the additional relief, which will be tapered away for estates valued at between £2million and £2.35million.
Although this increase in the threshold is good news, do not be tempted to assume that your assets will not attract inheritance tax, as the rising value of your estate in the future may still mean that you need inheritance tax advice.
Our clients are keen to avoid a substantial slice of the wealth they have worked hard to accumulate ending up in the pocket of the Chancellor of the Exchequer. That’s why we encourage them to talk to us about estate planning so we can help any potential future inheritance tax burden.
Call us now to find out how we can help you to safeguard your legacy for the benefit of the next generation.