Inheritance Tax Planning can be crucial to saving families money after a death in the family.
In the 2015/16 tax year, everyone is allowed to leave an estate valued at up to a £325,000 without their beneficiaries paying tax on it. This is the amount set by the Government and is called the nil-rate band.
After the £325,000 has been utilised there will be tax to pay at a rate of 40% on anything over that threshold. You will only pay 36% however should you leave at least 10% of your assets to a charity.
With the rise in house prices, many more people have been caught by the inheritance tax threshold so it’s worth taking the time to look at your assets to see if Inheritance Tax will affect your estate.
There’s a lot to consider with Inheritance Tax and planning and so it’s important to get the right advice to protect your estate.