Lifetime and Inheritance Tax Planning

Many of us  wish to ensure that out hard earned Savings and Investments pass to our loved ones upon our death. Talk to us today to see how we can help you protect and preserve as much as you can of your estate in a legally compliant and practical way.

Inheritance Tax

In the current tax year (2016/2017) if the value of your estate (this includes money, savings, investments, property and gifts made in the seven years before your death) is above £325,000 then (unless you are entitled to use an exemption) your estate will be liable to paying inheritance tax. The current rate of inheritance tax is levied is 40%. We can help you reduce the amount of inheritance tax payable on your estate. We have extensive knowledge of inheritance tax and know a little bit of planning now really can go a long way.

The new residential nil rate band

The good news is that with effect from 6 April 2017 it may be possible to claim an additional inheritance tax free allowance of £100,000 (in tax year 2017/2018) in connection with your property. It is hoped that this will remove a lot of people from paying inheritance tax.

The bad news is that in order to qualify your property must be inherited by direct descendants (i.e. your children or your grandchildren). If your existing Will leaves your estate to children by way of trust it is important to review your Will now to ensure that your estate can utlise this valuable new inheritance tax free allowance. Let us review your Will to ensure that your estate will benefit from the new allowance.

Lifetime Planning / Care home fees

There are very strict rules regarding giving away your assets in order to avoid paying for care.  These rules are known as deliberate deprivation and assets given away in such circumstances can be clawed back from the recipients by the local authority.  While you are perfectly entitled to spend your money how you wish, careful consideration is required to ensure that you do not fall foul of the rules.

Additionally if you give your assets away you may leave yourself financially vulnerable in your later life stages as the recipients circumstances might change, perhaps in a way that is inconceivable to you at this present time. For example:-

  • They might take your money and run!
  • They might become bankrupt and have the money taken away from them to pay their debts
  • They might get divorced and the money goes to a disliked ex in their matrimonial proceedings
  • They might die and the money could pass to people you do not know or like under the terms of their estate

Fortunately there are still some legal remedies that you can use which will protect and preserve some of your estate. Make an appointment today to see us to explore what you can do. Call Liz on 01704 870404 to make an appointment to see how Autumn Years Law can help you.