Inheritance Tax Planning
With house values in most of the UK showing two or even three fold increases in value over the last ten years Inheritance Tax has become a major issue for most households
The 'nil rate band' for an individual is currently £300,000 and this has only increased in line with RPI, not wages or house price inflation which would be a more realistic measure
As a consequence of this most households will have an Inheritance Tax bill as assets pass down to future generations, even though many tax advisers describe this as a 'voluntary tax' that can be avoided with careful advanced planning
With transfers of assets between spouses being exempt from Inheritance Tax it is possible to draw up wills very carefully to utilise fully the current £300,000 nil rate band on first death. This step alone would save £120,000 in tax
With the careful use of Trusts to wrap life assurance and pension scheme death benefits, or even privately owned assets like a second home, it is possible to mitigate a significant amount of your potential Inheritance Tax liability
For an appraisal of your circumstances contact your usual MMM adviser or nearest MMM Office so that we can provide you with bespoke tailored advice
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