Make a will ………
……… Don’t get hammered by Inheritance Tax
We believe that all individuals or couples with savings, property or life assurance should make provision for dependants and consider proper Inheritance Tax mitigation. A Will not only reflects a person’s wishes when they die but it also forms their final Inland Revenue return.
RELATIONSHIPS
Are you married or in a Civil Partnership?
People often believe, mistakenly, that everything passes to their spouse/Civil Partner if they die. This is incorrect. Your assets, if you die without a Will, are divided under the Law of Intestacy. These provisions do not always follow the wishes of the deceased and often create tax bills which could have been avoided.
Do you have children?
It is imperative that you make a Will. If you have minor children and you die in an accident with your partner or you are a single parent, it is important that you decide who should act as the Guardians for your family. That person(s) will bring up your children as their own, after your death. You will also need to consider the appointment of Trustees to look after financial matters.
Do you cohabit?
If you live with someone else but are not married, have you considered the consequences of your death? If you own a property jointly, do you wish your half share to pass to that individual? What about your other belongings, monies and insurance policies?
ASSETS
To consider your position you need to value your Estate or joint wealth if you are married, at the time of your death. In the tax year 2009/2010 everyone is allowed to leave £325,000 (the nil rate band) before Inheritance Tax bites at 40%. With the value of property and the payment of lump sums by life policies, endowments and death benefits from work, many people who are not on the face of it obviously wealthy, face potentially very high Inheritance Tax bills. The impact of this has been softened by permitting any unused part of the £325,000 nil rate band to be transferred to the surviving spouse, meaning that an estate of up to £650,000 will escape IHT, thus reducing the need for complex tax planning for many couples.
Do you own a house?
Rising house prices over the past 10 years have created a potential Inheritance Tax bill for thousands of families. The ability to transfer the unused part of the nil rate band after the death of the first spouse has reduced the need for tax avoidance strategies.
Do you have life cover?
On almost every occasion, this should be written in Trust for Inheritance Tax purposes. It is a simple process and could save thousands of pounds.
Do you have any savings?
There are a number of measures you can adopt to mitigate the potential Inheritance Tax bill your Estate may face when you die. If the tax is avoidable, why pay the Government? Protect your capital!
THE NEXT STEP
Complete the Will and Tax Planning Questionnaire and send it to us.
We will assess your position and advise you whether anything can be done to significantly reduce Inheritance Tax. If you decide to take the matter further we will quote you a fee to advise on tax efficient provisions to be included in your Will, and can recommend a solicitor if you need one. We will also advise you on measures that could be taken whilst you are alive and kicking to save Inheritance Tax.
For further information, please fill out our contact form or call us on 020 8577 1000 or email value@csuk.com
