Inheritance tax is then payable at 40% on any of the estate over £650,000. For single people, that threshold is only £325,000.
If you think about all of your assets (e.g. house, investments, savings, insurance, jewellery, cars, business interests etc) it's not uncommon for a single person to leave an estate in excess of £600,000. The 40% tax liability on an estate of this size would be £110,000 which will often have to be paid by your family before they can realise the residual value of your estate. How would your family deal with the cost and consequences of funding such a high level of tax liability for any period of time?
By careful planning now, you could reduce dramatically the burden of Inheritance Tax placed upon your family.
Astute planning to reduce the burden of Inheritance Tax has to be a totally integrated financial approach, involving the correct structuring of Will arrangements, a prudent distribution of assets to reduce the amounts of tax that will have to be paid and making provision to provide the funds necessary upon death to cover any remaining tax liability.
At BHW we don't believe that one size fits all. We work with you (and your financial advisors and accountants where necessary) to ensure that you receive the best possible, tailored advice to allow you to reduce the burden of Inheritance Tax through the use of Wills and Trusts.
Please contact our Head of Estate Planning Jayne Parsons if you would like to discuss our Inheritance Tax Planning services further.
