Inheritance Tax Planning - HilliersHRW Solicitors - Solicitors Bedford and Stevenage

Inheritance tax planning can be extremely complex. HilliersHRW Solicitors has a wealth of experience to ensure your beneficiaries pay the minimum amount of tax possible future

There are a number of exemptions and reliefs that are available to reduce or dispense with any tax payable that can be briefly explained as follows:

1. Spouse Exemption:
Any assets passing between husband and wife will be exempt from any Inheritance Tax regardless of the amount and whether this is higher than the current threshold.

2. Charity Exemption:
Any bequests or gifts you make to charities will also be exempt from Inheritance Tax

3. Annual Exemption:
We are all entitled to give away a certain amount of assets each year before Inheritance Tax becomes due. This is currently £3,000. If you have not used you annual exemption in the year of your death and the tax year before you can offset this against the value of your estate.

4. Tax Reliefs:
There are certain reliefs which apply to business and agricultural assets you may own at your death which will grant you either full or half the value of such assets as tax free. You must also be aware that any attempt you make at reducing your estate by giving away your assets before your death will be subject to the "Seven Year Rule". Simply, you must survive for a period of seven years from the date of the gift you have made, for the value of that gift to fall out of account on your death.

If you should give away any of your assets and die within that 7 year period then the value of that gift (subject to certain relief’s) is added back into your estate, almost on the basis that you never gave it away in the first place. If by adding back this gift results in either some or more Inheritance Tax to pay, then it is the recipient of the gift who must find the tax and not your estate! Furthermore the regulations make it almost impossible for you to give an asset away if it is your intention to keep some kind of interest in that asset, i.e. giving away your property and continuing to live in it.

As you can see the subject of Inheritance Tax and its impact on you and your Will is a very diverse and complicated subject for discussion. We would therefore suggest that if you have any concerns over your potential Inheritance Tax position that you discuss it with us, if you have not done so already.

Contact:

Michael Culver. Stevenage Office: 01438 346000. email
Fiona Nash. Bedford Office: 01234 858000. email

	Making a Will Probate Contentious Probate Court of Protection Power of Attorney Tax Planning Trusts	Inheritance tax planning can be extremely complex. HilliersHRW Solicitors has a wealth of experience to ensure your beneficiaries pay the minimum amount of tax possible future There are a number of exemptions and reliefs that are available to reduce or dispense with any tax payable that can be briefly explained as follows: 1. Spouse Exemption: Any assets passing between husband and wife will be exempt from any Inheritance Tax regardless of the amount and whether this is higher than the current threshold. 2. Charity Exemption: Any bequests or gifts you make to charities will also be exempt from Inheritance Tax 3. Annual Exemption: We are all entitled to give away a certain amount of assets each year before Inheritance Tax becomes due. This is currently £3,000. If you have not used you annual exemption in the year of your death and the tax year before you can offset this against the value of your estate. 4. Tax Reliefs: There are certain reliefs which apply to business and agricultural assets you may own at your death which will grant you either full or half the value of such assets as tax free. You must also be aware that any attempt you make at reducing your estate by giving away your assets before your death will be subject to the "Seven Year Rule". Simply, you must survive for a period of seven years from the date of the gift you have made, for the value of that gift to fall out of account on your death. If you should give away any of your assets and die within that 7 year period then the value of that gift (subject to certain relief’s) is added back into your estate, almost on the basis that you never gave it away in the first place. If by adding back this gift results in either some or more Inheritance Tax to pay, then it is the recipient of the gift who must find the tax and not your estate! Furthermore the regulations make it almost impossible for you to give an asset away if it is your intention to keep some kind of interest in that asset, i.e. giving away your property and continuing to live in it. As you can see the subject of Inheritance Tax and its impact on you and your Will is a very diverse and complicated subject for discussion. We would therefore suggest that if you have any concerns over your potential Inheritance Tax position that you discuss it with us, if you have not done so already. Contact: Michael Culver. Stevenage Office: 01438 346000. email Fiona Nash. Bedford Office: 01234 858000. email Back to top

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