Company Information
Legal Estate Planning Ltd
39 Garrett St
Nuneaton
CV11 4PZ
0845 263 5083
Inheritance Tax Planning in Nuneaton
Inheritance Tax
Do You Know Your Position?
Inheritance Tax (IHT) is a combined gift tax and death duty. It applies to gifts made during a person's lifetime and to his/her estate on death.
The first £312,000 of chargeable transfers (the 'nil rate band' 2007) is free of IHT. Amounts in excess of this are taxed at 40%. There is no IHT payable on transfers to a spouse or legal civil partner.
It is worth noting that, upon your death, IHT has to be paid by your personal representative before they are able to administer your estate. This means that any IHT liability cannot be paid directly from your assets, but must be met from other sources; normally bank borrowing. One way this problem can be overcome is by arranging an appropriate life assurance policy in trust for your beneficiaries see your independent financial advisor.
There are many ways in which an IHT liability can be reduced, and in some cases removed altogether. Such ways could include one or more of the following:
- Will, Succession and Trust Planning
- Nil Rate Band Discretionary Will Trust
- Revocable Interest in Possession Trust
- Business Trust
- Equalisation of estates for married couples or civil partners
- Lifetime Transfers
- Use of Annual Exemptions
- Potentially Exempt Transfers
- Use of Relief's (e.g. Business Relief, Agricultural Relief)
- Gift & Loan Trust
or
Do nothing and leave it to the government's plan
Alistair Darlings Pre-Budget announcement 9th October 2007
When and if passed without change in the finance Act 2008, the Automatic transfer of any unused Nil Rate band allowance between a surviving spouse or a civil partner does mean a possible transfer of an estate up to £600,000 free of inheritance tax
But Beware!
Should the surviving partner remarry, purchase a joint property with a new partner or maybe consider a new beneficiary, after a fall out with a member of the family then, your children could be disinherited and receive nothing from your estate.
We Recommend That YOU make the choice and have a your Will Professionally written. It could save your loved ones £1,000's.
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LEGAL ESTATE PLANNING LIMITED
39 GARRETT STREET,NUNEATON, CV11 4PZ
Company No. 06846401