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 to potentially remove inheritance tax from your list of financial concerns, complete our online contact form or call our helpline on 0808 156 1176. We're here to offer the inheritance tax planning 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. In addition, a new main residence nil-rate band is being phased in from 2017. 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.
How does Inheritance Tax work?
If there is a will in place, the executor - the person dealing with the estate - will use funds from your estate to pay IHT to HM Revenue and Customs, while the people who inherit the estate, the beneficiaries, will not normally be required to pay tax on what they inherit.
Find out more about how IHT works and about specific areas relating to inheritance tax planning, including more information about allowance, by clicking on the relevant links below:
Comprehensive advice
IHT planning 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, 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.