It's never an easy subject to contemplate. But without taking adequate steps you could be liable to leave behind a 40% Inheritance Tax bill when you die. What's more your loved ones could be forced to pay it before they can inherit what you want them to have.
If, when you pass away, the value of your estate is above £325,000 if you're single or divorced, or £650,000 if you're married or in a civil partnership (if you're widowed, it is up to £650,000 depending on how much allowance was used when your partner passed away), everything you own above this threshold may be liable for a 40% IHT bill.
These Inheritance Tax thresholds might seem like a lot, but when you add up the value of your estate – which includes your property, car, jewellery, savings and investments – you might be surprised by how much it's worth.
Take steps today - Inheritance Tax Planning Service
If you believe you might have an Inheritance Tax liability (or, indeed, may do so in future, because your estate's value could increase over the next few years), there are ways of tackling the problem. For example, there are annual gift exemptions which you can utilise to give some of your wealth to loved ones early, free of tax. However, it's strongly recommended you seek professional advice.
Skipton Financial Services Limited (SFS) offers an Inheritance Tax planning service, where we can help you to determine if you have, or in future may have, a liability – before researching the market and offering recommendations on ways you could reduce or, in some cases even, eliminate your potential burden, suited to your individual circumstances.