In the event of a person’s death, their estate (such as money, possessions and their share of any property) is usually passed onto beneficiaries. Inheritance Tax (IHT) may be paid on that estate, ultimately reducing the value of how much is passed onto loved ones.
The current individual nil-rate band is £325,000 and if you leave anything above this, the amount is liable to IHT of 40%. We have written previously about the increase in IHT paid this year.
Ultimately, you want as much of your estate as possible to pass onto your beneficiaries. So what steps can you take to reduce IHT?
These are just a few steps you can take to help reduce IHT. There are other things that can have an effect such as setting up a trust, taking out life insurance or simply spending your money – after all, you’ve worked hard to build up these assets over the years.
IHT planning is something that should be considered sooner rather than later. We are based in Shropshire but also offer professional financial advice to clients across Herefordshire, Powys and Staffordshire.
Want to know more about how IHT could affect your estate? Get in touch with our friendly and approachable independent financial advisers today.