Estate Planning, Inheritance Tax and Trusts

The current Inheritance tax nil rate band is £325,000 or £650,000 per couple.

In addition and from the 5/4/17 each *Individual can claim an additional residential nil rate allowance of £100,000 (rising to £175,000 by 2020) to offset against the sale of a family home on death, on top of the existing £325,000 inheritance tax exemption.

So potentially a couple could pass £1M free of inheritance tax in the future.

*However not everyone will qualify. The new allowance is not available to those with no children and Estates worth more than £2m will be penalised.

There is a 40% tax charge on any assets valued in excess of the nil rate allowance.

There are many ways in which to reduce or eliminate inheritance tax liability, ranging from whole life policies, gifts, trusts and special investments through to funding grandchildren’s future education.

We can advise on the best solution for you, depending on your individual circumstances.

All Investments carry a degree of risk, National Savings products carry one of the lowest forms of risk whereas equities and shares carry the highest level of risk. The value of units can fall as well as rise, and you may not get back all of your original investment.

Risk Warnings:

• The Financial Conduct Authority does not provide oversight of Inheritance Tax Planning.
• Trusts, Taxation and Estate Planning advice are not regulated by the Financial Conduct Authority.