Since 1997, "the number of estates liable to pay "death
duty" has already more than doubled. The
Chancellor's revenues from IHT have also ballooned, to a projected £3.3 billion
this year, from £1.5 billion in 1996-97."
(Sunday Times 26th February 2006).
With increased house prices inheritance tax planning has become something that the majority of us now need to consider.Recent changes in legislation have, in some case, exacerbated the problem. Inheritance tax was once an issue affecting only the "high net worth" client. It is essential now in considering the terms of your Will that we consider with you the steps that could currently be taken to shelter from inheritance tax up to £550,000.00 of your joint estate.
Click here to find out more about Inheritance Tax Rules and Rates
It is not only however sufficient to put in place inheritance tax efficient Wills, it is also necessary to consider with you how the ownership of your assets is structured so that both you and your spouse or civil partner can fully maximise the inheritance tax planning opportunities available. You may read articles in the press advertising the use of tax efficient Wills particularly to deal with the ownership of your house on your death. Whilst there are a range of options available to you, some of these are restricted in use if, for example, you have made gifts of assets between you and your spouse in the last 20 years or so. If that is the case we at Armitage Sykes LLP are more able to provide for you a bespoke tailor-made Will that presently deals with this type of problem.
It is also good practice to consider with you the availability of any relief from inheritance tax in conjunction with the nature of your assets, for example, business or agricultural property and we can consider with you how to take advantage fully of any such relief.
If, after putting in place inheritance tax efficient Wills and addressing the ownership of your assets, there remains a charge to inheritance tax on your death further steps can be taken to mitigate the eventual charge.
Click here for other inheritance tax planning opportunities.
Contact us for further information on inheritance tax planning.