Home > Professional Services > Choosing Inheritance Tax Planning Advice

Choosing Inheritance Tax Planning Advice

By: J.A.J Aaronson - Updated: 3 Jul 2018 | comments*Discuss
 
Inheritance Tax Planning Inheritance

Inheritance planning is amongst the most important aspects of your financial life. Many people consider inheritance planning to be the preserve of the very rich, something that the majority of the population need not worry about. This is incorrect for two reasons.

First of all, although property prices have taken a significant hit during the recession, the subsequent return to high values will mean that many households find themselves within the Inheritance Tax (IHT) threshold, known as the nil-rate band.

Furthermore, inheritance planning is not just for those with an IHT liability. Rather, it is about ensuring that your assets, regardless of their value, are disbursed in an efficient and effective manner, and in a way that reflects your wishes.

For these reasons, Inheritance Tax planning should be a consideration for everyone. For many people, this will be as simple as Writing A Will. If properly drafted, witnessed and signed, this will be enough for many. It will help to ensure that your assets are divided up in an appropriate way, and that your estate will not fall victim to intestacy laws. Writing a will is particularly important if you are unmarried, or if you wish for some or all of your assets to pass to a person other than your spouse.

The Risks of IHT

However, many others should give due consideration to the risks posed by Inheritance Tax. Although initially designed to break up huge estates, this tax now threatens to relieve your descendents of 40 per cent of the value of their inheritance. This is not, generally, the way in which most people envisage their affairs being dealt with.

Inheritance tax planning is an ongoing process which may involve techniques like gifting and the establishment of trusts. This is beyond the knowledge of most people. If you have an Accountant, they may be able to offer some advice. This is particularly true in the case of estates which fall above the Inheritance Tax threshold (£325,000 in 2018-19) but are not particularly complex. This may involve setting up a trust to separate certain assets from your estate – a task for which you should always seek professional advice.

Specialist Advice

However, as a result of the specialised nature of inheritance planning, some ‘standard’ accountants may not be able to offer you the help that you need. In these cases you should seek specific advice. Perhaps unexpectedly, some banks offer excellent inheritance tax planning advice. They can aid you with the establishment of both British-based and offshore trusts, and can also act as professional executors or trustees. However, it is important to remember that these organisations are ultimately out to make money, and the advice you receive may not, therefore, be entirely impartial.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • Sbuj
    Re: How Will My Second Job Be Taxed?
    Hi I have full time job plus extra part time if I will start working for agency tax for one of my extra jobs will b change…
    16 October 2018
  • Lizzie
    Re: Children's Bonus Bond
    I was bought a £25 Children's Bonus Bond as a christening present in 2001 and was wondering how much it is worth now and when it matures.
    8 October 2018
  • Storm
    Re: What Does Road Tax Pay For?
    I see a fair bit of pothole repairs, the biggest problem I see is the work carried out is very poor indeed more often than not as…
    26 September 2018
  • PETA
    Re: Payment of Pensions
    Can I change my pension to weekly how does this work
    20 September 2018
  • Kaz
    Re: How Will My Second Job Be Taxed?
    Up until june this year i only had 1 job of 14 hrs a wk at minimum.wage, i now have 3 jobs, the 2nd one being 6.7 hrs a wk @…
    19 September 2018
  • Dom
    Re: Claiming Tax Relief on Mileage
    I am paid a £250 per month travel allowance with my salary, and claim monthly travel expenses each month from the company for…
    13 September 2018
  • Fifi
    Re: How Will My Second Job Be Taxed?
    Hi I’m working 22hrs a week at 7.85ph but also signed up to an agency to work as and when, how much tax would I pay
    11 September 2018
  • Littledigidi
    Re: Claiming Tax Relief on Mileage
    Hi - I have a fuel card, the majority of my mileage is work related. can i claim any tax back on this. My company pay for all my…
    10 September 2018
  • TheTaxGuide
    Re: How Will My Second Job Be Taxed?
    B - Your Question:I have two jobs the first is as and when and the second is 12 hrs a week, combined I am nowhere near the…
    4 September 2018
  • Loui
    Re: How Will My Second Job Be Taxed?
    I am employed working 15hrs at £8.20 but get paid monthly and I'm self employed for 2 hrs a week at £8.00 a week. Would I get…
    3 September 2018