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Inheritance Tax

Inheritance Tax Solicitors - Wakefield, Pontefract, Leeds & Batley

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01924 387 171

Many find the idea of discussing inheritance uncomfortable and assume that Inheritance Tax (IHT) Planning is complicated and so leave it until the last minute, by which time it may be too late to make a difference. If your total assets are over the IHT threshold, your estate may be subject to a large tax bill soon after your death. But receive the correct advice and you may be able to keep the bill to a minimum.

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What is IHT?

IHT is the tax which your estate may be liable for if your estate (everything you own) is above a certain amount. Everything above that threshold is usually taxed at a rate of 40%.

Everyone has a tax-free allowance and is entitled to pass £325,000 free of IHT. This is known as the ‘Nil Rate Band’.

Married couples and civil partners can share their allowance and transfer any unused allowance to their spouse/partner on death. This means that a married couple/civil partners can have a joint Nil Rate Band of £650,000.

Our team at JWP Solicitors can work with you to ensure that you make use of all the IHT reliefs that are available and make sure that the allowances work for you.

Your Inheritance Tax Solicitor can help you with

 
Keeping your IHT bill to a minimum
 
Understanding and planning for IHT
 
Reducing the size of your taxable estate
 
Making a Will

How much will it cost?

We offer a free first meeting to understand the details of your case and discuss potential routes forward. Before progressing with your case we will always provide a transparent view of costs. In many cases, we’re able to offer a fixed price upfront for our services.

Who pays IHT?

The named Executor in your Will is responsible for arranging the tax payment to HM Revenue & Customs. If you do not have a Will, it is the responsibility of your Administrator instead.

HM Revenue & Customs require IHT liability to be settled within 6 months from the date of death. The payment is usually made from funds within the estate or from the funds raised by selling assets within the estate.

What about the Family Home?

In April 2017 an extra IHT allowance was introduced known at the ‘Residential Nil Rate Band’ (RNRB). This applies when the primary residence (the main home, usually the family home) is passed to direct/lineal descendants.

The RNRB allowance is now a maximum of £175,000 per person and like the NRB allowance, any unused allowance can be transferred to a surviving spouse/civil partner.

This means that married couples/civil partners have a potential tax-free allowance of £1 million.

How to plan for IHT?

There are various ways you can reduce the size of your taxable estate such as:

·         Making lifetime gifts

·         Using Trusts

·         Charitable giving

·         Making use of pensions

Most importantly: Make a Will.

Before you consider any other form of IHT planning, it is essential that you have an up to date Will. Making a Will is one of the most important things that you can do to ensure that your estate goes to who you want it to, and trustworthy Executors are appointed.

If you already have a Will, you still might need to take action to ensure that you can benefit from the RNRB. Your Will should be reviewed every 5 years in any event.

 

Chloe Aston

Chloe Aston

Private Client
JWP Solicitor

Direct Dial 01977 790 029

Joanna Longfellow

Joanna Longfellow

Private Client
Head of Private Client

Direct Dial 01924 387 171