Inheritance tax is hitting more and more families due to the increases in house prices and the government's failure to increase the threshold when tax becomes payable.

Tax is payable on the value of your assets on your death after deduction of any liabilities. This includes your share of jointly owned assets such as your home.

The current rate of tax is:

Up to £300000 : 0%
Over £300000 : 40%

It is important to maximise the use of your "nil – rate" allowance.

Many couples lose this allowance by leaving all their assets to their husband or wife or partner. No tax is then payable. When the survivor dies they only have one nil-rate allowance. Therefore if their combined assets are say £600,000 the tax bill is £120,000. Had both nil-rate allowances been used then this tax could have been avoided.

Use of a nil-rate discretionary trust will would have saved this tax.

We can advise you on setting up and implementing this scheme and others to help reduce tax paid for the benefit of your children or others who you wish to inherit from you.
 

Contact:

Carolyn Tilly
cjtilly@tbi.law.co.uk
01429 264101