Inheritance tax – things to think about

 

By Adam Fletcher

When talking to clients about wills, inheritance tax is something that they are often unaware of.

The thresholds for inheritance tax are £325,000 for single people and £650,000 for couples. The taxed amount is 40p for every pound over the threshold. As such, if you think that you are above the threshold it is imperative that you speak to an expert estate planning solicitor and receive professional legal advice on how to minimise the amount of inheritance tax you will pay. It is also worth noting that the threshold amount includes assets held in trusts and any gifts made within a seven year period prior to death.

I recently spoke to a client who was in touch with Contact Law regarding a will for himself and his wife. As they owned eight properties and the value of their estate was around £1m, they were looking at paying around £140,000 in tax. The client was totally unaware of the substantial amount of tax they would have to pay on execution of their estate and was grateful for the help they received from Contact Law and the solicitor we recommended for them.

There are several things that can be done to minimise the amount of inheritance tax payable. For example, gifts are exempt if the person dies more than seven years after it was made, and an annual gift of up to £3000 is exempt. There are many more things which can be done. If inheritance tax is something you are concerned about you should definitely seek legal advice.

Contact Law has a network of over 1000 law firms throughout the UK and can put you in touch with an expert estate planning solicitor. To talk to one of our case handlers and get in touch with a specialist solicitor, please call 0800 1777 162.

Adam Fletcher is one of Contact Law’s most knowledgeable case handlers with extensive experience in this matter from dealing with clients on a day-to-day basis.

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