For inheritance tax planning and advice, request a free, no obligation phone consultation with the highest rated Independent Financial Advisors.
Planning ahead for when you die allows you to maximise inheritance tax reliefs and any exemptions that you may be due. IFAs specialising in inheritance tax planning can save you tens of thousands of pounds with perfectly legal ways to avoid paying it. The Money Advisory Bureau can put you in touch with only the highest rated IFA in your area with proven expertise in inheritance tax advice.
They have achieved the highest consumer and industry ratings for the integrity and quality of their service and will provide free, impartial and no obligation advice so you can make informed judgements about your inheritance tax liability.
An IFA can give you impartial inheritance tax advice on a range of issues including the following:
Making a Will
Making a will and ensuring your loved ones know where to find it will ensure your estate is divided as you intend in the event of your death.
If you have complex financial affairs, you will need financial and legal advice and an IFA should be your first port of call.
Inheritance Tax Exemptions
The inheritance tax threshold is £325,000 per person and anything above this threshold will be taxed at 40%. If you think you might exceed the threshold, you may want to gift some of your assets in advance of your death. Certain gifts you make more than seven years before your death will be exempt from inheritance tax.
You will need to get financial advice about which gifts will be exempt from inheritance tax. Making the right decisions at this stage could save you thousands of pounds by not retaining all your wealth until you die which would then be subject to inheritance tax should you breach the exemption threshold.
Giving Your Home Away
If you want to give your home away to your children or anyone else while you are still alive, there may well be some tax implications.
For instance, if you give your home away but continue to live in it, the beneficiary may still have to pay inheritance tax when you die or possibly even income tax. If you were to sell your home and give the proceeds to your children, they will not have to pay inheritance tax if you live for seven years after you make the gift. An IFA can advise you as to your best options and how to legally avoid paying inheritance tax on your home.
Giving to Charity
Any gift that you make to a ‘qualifying’ charity will not be subject to inheritance tax. Additionally, if you leave at least 10% of your wealth to a ‘qualifying’ charity, you may qualify to pay inheritance tax at 36% rather than the normal 40% rate.
Please not that a ‘qualifying’ charity is one that is recognised as a charity for tax purposes by HM Revenue and Customs.
Trusts and Inheritance Tax
You may want to use a trust to pass your assets on to others, in particular your children. If your estate is over the inheritance tax threshold, gifts into the trust may still be subject to inheritance tax.
The rules regarding trusts can be very complex and HMRC advise that you seek professional advice.
Inheritance Tax Relief For Businesses
You may be able to claim special relief for your business assets such as land, buildings, machinery and shares. It’s possible that these may be passed on free from inheritance tax while you are still alive or in your will.
You should seek advice to see if your personal circumstances will allow you to take advantage of this allowance.
An experienced IFA can ensure you and your loved ones make the most of the complicated inheritance tax rules. A free consultation should be the starting point to saving thousands of pounds by legally avoiding paying inheritance tax and an IFA can help you with the factors to consider so you can put plans in place now rather than panicking later.
All the IFAs recommended by us are authorised and regulated by the Financial Services Authority (FSA) which means that they are qualified to give unbiased, independent and professional advice. They will be the highest rated advisors in your area dealing with inheritance tax planning and will give you a free telephone consultation and advice on the whole market. For instance, you may wish to obtain free advice about the following:
- Will I have to pay inheritance tax?
- Who should I make the beneficiaries to my will to be most tax efficient?
- What are the various inheritance tax thresholds that might affect me?
- Do the thresholds change if I’m married / divorce?
- Am I able to reduce my inheritance tax bill?
- What are the rules on leaving gifts while I am still alive?
- Can I gift anything to my children now and avoid inheritance tax?
- How can I make use of the 7 year rule to reduce my liability?
- What are the advantages of using a trust to pass on my assets?
- An IFA can answer these and all your queries about inheritance tax and how it will affect you.