INHERITANCE TAX, IHT CALCULATOR, MAKING A WILL
Inheritance tax * IHT calculator * making a will * severing joint tenancy * what is Inheritance Tax * nil rate band discretionary trusts
INHERITANCE TAX (IHT)
Inheritance tax is one of those taxes that you can avoid paying if you plan it right. Tax avoidance is perfectly legal and not to be confused with tax evasion which is a criminal offence. Not that that is going to bother you once you are dead but evading inheritance tax would still cause your beneficiaries more grief than necessary, so proper Inheritance Tax planning is essential.
INHERITANCE TAX (IHT) CALULATOR
People often joke that the Chancellor would tax the air you breathe if he could. In essence he does. He just waits till you stop breathing, adds up the sum value of your life and then takes a chunk for himself.
To be fair, this is purely a voluntary contribution on your part and a tax you don't have to pay if you don't want to and it can easily be avoided by proper planning.
The Probate Office has recently tightened up on calculating how much Inheritance Tax you should pay and now go into far greater detail, asking all types of questions about everything you own, from jewellery, furniture and down to the clothes you wear.
To calculate the value of your estate, and to see how much inheritance tax you will be liable for, please feel free to use our inheritance tax calculator.
MAKING A WILL
The first step in planning to avoid paying inheritance tax is to make a will.
Do you want your estate to pass to your beneficiaries or the state when you die? Seems like a foolish question but you would be amazed at how many people don't bother to make a will and simply throw money at the chancellor who is of course eternally grateful.
Do you want to avoid having to pay inheritance tax?
There are of course a number of confusing elements to Inheritance Tax avoidance, which is why it is essential to take professional advice. A properly drafted will can deal with all these issues.
Confused by discretionary trusts?
If you die intestate without making a will, the sum of your possessions will be distributed in accordance with the UK intestacy rules. This might mean that a proportion of your estate including just about everything you own passes to the Crown and your family and friends end up with less than they could have.
If you have already made a will, it is highly likely that it is not tax efficient. Your solicitor may be good at conveyancing but is she or he an inheritance tax expert. If you are married or residing in a civil partnership, you could save as much as £120,000 in inheritance tax if you have your wills properly drafted by an inheritance tax planning and Will writing specialist.
To find out more about inheritance tax planning and will writing, please feel free to explore our website, or contact us for a no-obligation confidential discussion with an expert in wills and inheritance tax planning.