What is inheritance tax? Well, a wise man once called inheritance tax "a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue". That wise man was former Chancellor Roy Jenkins, and his point was that there are many ways to mitigate inheritance tax, or IHT, if you know what you're doing.
Luckily, the team of experts here at Equilibrium do know what they're doing. Many clients turn to us and our services to help them with this essential part of their finance planning, knowing that it is often a complicated subject that can leave family members and loved ones paying significantly more in tax than necessary.
To get in touch with our friendly specialists - based in Wilmslow and Chester - and remove inheritance tax from your list of financial concerns, complete our online contact form or call 0808 156 1176. We're here to offer the inheritance tax advice you need to ensure the issue is no longer a cause for concern.
What is inheritance tax?
Inheritance tax needs to be paid if a person's estate is worth more than a certain threshold - currently £325,000 - when they die. The executor of a will or administrator of the estate must pay the tax using funds from the estate.
At the moment the tax comes at a cost of 40% on anything above the threshold - a total waste if you can reduce this bill by reallocating some of your assets in good time, and within the allowances.
Inheritance tax is sometimes put on the backburner, either because people don't like to think about what will happen to their estate after they die, or because they don't believe they need to consider it yet. However, it's always best to start your inheritance tax planning as early as possible, so you're privy to the broadest range of options available to you and no longer have to worry about it.
With a number of factors influencing the value of your estate and the bill that eventually hits your beneficiaries, some comprehensive calculations are required in order to best manage your affairs upon your death. We can provide all the information you need about matters that can make a huge difference to you and your family, such as inheritance tax exemptions and inheritance tax avoidance.
We can also help you decide who you want to offer gifts towards, when you might want to start gifting, and how frequently. There may be charities or political causes you'd like to consider supporting, taking advantage of their exemption from IHT.
Contact us today
Speak to us at Equilibrium about your needs and wishes both now, in life, and in death. Any remaining assets that you don't spend will be left to your estate and those named in your will, and you undoubtedly want to ensure your wishes are carried out, rather than all your best intentions falling into the hands of the taxman because you didn't think through your estate plan properly.
While we can ensure an appropriate plan whatever your circumstances, it's probably best considered sooner rather than later.
We have clients from in and around Manchester and Cheshire. To get in touch, complete our online contact form or call our inheritance tax helpline on 0808 156 1176. We can explain how inheritance tax works and how to best avoid it.
The information contained within the website should not be looked upon as advice or recommendation. Clients should seek the appropriate guidance from their financial planner.