Despite the announcement of the inheritance tax threshold being raised earlier this year, many still have to pay what they consider to be over the odds to pass wealth down.
As the Chancellor’s ‘family home allowance’ does not come into effect until April 2017, this is likely to be the case for the next few years – the latest HM Revenue and Customs data, for instance, revealed that the average bill was £5,000 more expensive than previously before.
As a result of this, today our Leeds-based financial adviser team are outlining some of the things that you could do to legally avoid paying more than you would ideally like to.
We’ll outline a few ways below:
You can give up to £3,000 in tax-free gifts every year. These fall outside of your estate immediately, meaning that this particular method is a great way of gradually reducing the final value.
Some assets can be placed in trusts that can successfully be set up with little or no charge. There are many of these available.
While it may seem like the most obvious point of all, the fact of the matter is that many fail to make a will. It has in fact been estimated that 70% of adults with children under the age of 18 do not do so. Considering that making one is a vital step in estate planning, this is an alarming figure.
If you are based in the Leeds or Yorkshire areas and would like more information on any of the above, please do feel free to get in touch – no one size fits all when it comes to inheritance tax planning, and our financial advisers are keen to work with clients to meet their individual needs.
You can speak to someone from our Morley office by either calling 0113 350 2080 or emailing firstname.lastname@example.org.