Part of your financial plan may include gifting to charity, friends, and family.
What is Inheritance Tax?
Inheritance tax is a tax that many people don’t consider or assume it’s something that only affects the rich. However, it is now something that affects thousands of families.
The current starting point from when you have to pay inheritance tax is £325,000. This is commonly known as the ‘nil-rate band’. Everything you own over and above this amount is potentially subject to 40% tax when you die.
Inheritance tax is a complex area and there are various rules that govern the gifting of assets. Trusts can also play a key role in financial planning for individuals and families.
What if I do nothing?
Depending on your situation, if you don’t do anything your estate could be subject to a high tax bill.
Inheritance tax is often called the ‘voluntary tax’ as with good advice and careful planning it can be reduced or avoided altogether. The amount to be paid is largely decided by the actions you take before you die. So it’s important that you take steps now to protect your estate.
Our team can help identify if you do have a potential liability, and make recommendations.