Whether your wealth increases as a result of careful planning over many years or as a result of receiving an unexpected inheritance, they both result in the need for some specific advice on how to pass on this wealth to future generations without losing chunks along the way to Her Majesties Revenue and Customs.
Whilst it is true that recent governments have tried to help in this area it is only relevant for people with their main residences valued above the nil rate band which currently stands at £325,000 per person. If your main residence is valued at more than this figure, then some of the recently introduced Main Residence Nil Rate Band maybe of some use. In our experience large amounts of the population may own property just below this value but other savings and investments take them well above this level. In this instance some well though out planning prior to death may result in none or very little inheritance tax due on your estate.
Some of the solutions to this problem can involve setting up a trust so that the assets pass onto your beneficiaries in a tax efficient manner. They could involve giving some assets away using the Potentially Exempt Transfer 7-year rule and removing them from your estate in this manner.
Finally but not exhaustively you can use your annual inheritance tax of course your annual IHT gift allowance of up to £3,000 each tax year, there are other gifts that are permitted such as wedding gifts, for children, grandchildren and friend, these all have different limits and small gifts to an individual of £250, as many different friends as you like, as long as they are not receiving any other gifts.
Want to learn more about our Wealth Management Inheritance Services and how we can help you make the most of your money?