Leaving a legacy - tax implications when Passing on your wealth
Inheritance tax could be potentially payable on your Estate when you pass away and be a bill for your loved ones. For many of the clients we look after they are keen to ensure that they pass on their wealth to the right people and reduce the potential tax bill that their family and beneficiaries have to pay.
Inheritance Tax can sometimes appear complicated and as a result people put off essential planning until it is too late because they don’t understand all of the options available to them. As estate planning experts we want to take away the perceived complexity and explain it in a simple and straightforward manner. We can help you with solutions that match your personal circumstances and objectives.
how much could your beneficiaries pay?
On passing away the value of your assets will be assessed and anything above the Inheritance Tax (IHT) threshold of £325,000 (the Nil Rate Band) will normally be subject to tax at 40%.
For Married couples and Civil Partners you can combine the Nil Rate Band meaning there is normally nothing to pay on the first £650,000. There is also a new IHT Residence Nil Rate Band introduced in April 2017 which could further reduce your liability.
what options do you have?
One of the simplest options is to start gifting capital to your loved ones, although there are restrictions on the amount you can give away each year. It is a cost free and very effective way of reducing your tax bill.
You can also use trusts to help protect your assets for the benefit of your loved ones and gives you greater control of what happens with your hard earned wealth after you’ve passed away. The use of trusts is not necessarily just about reducing your potential tax liability. They can be used to ensure the right people inherit your wealth and provide you with peace of mind.
You can also make use of investments to reduce your potential liability. Some investments are given favourable tax treatment although these might not be suitable for everyone.
Local to you
We are based in Trowbridge, Wiltshire and serve the local area including Bath, Frome, Warminster, Calne, Corsham, Westbury, Melksham, Devizes, Chippenham, Bradford on Avon and the surrounding villages.
We can provide you with independent estate planning and inheritance tax planning advice in your own home or a place that suits you at a time that fits in with your lifestyle.
The initial consultation is provided at no cost to you and we can use that time to explore what is important to you.