The cause of this increase is expected to be a massive jump in the value of property. There are a number of ways to legally distribute and protect your estate and pass on your home and inheritance to your family.
Here are a couple to think about:
If you’re married, you have a couple of advantages over unmarried partners when it comes to death duty. Not only can you pass wealth between yourself and your spouse tax free but your Inheritance Tax allowance passes automatically to your spouse when you die.
However , if you are not married you can write a Will which doubles your Inheritance Tax allowance.
This puts more of your estate out of the hands of the tax man and can give you a saving of up to £130,000 in tax. Whether you’re married or not there are a number of ways of transferring assets into tax free vehicles without losing access to income.
Annual Gift Allowance.
You’re legally entitled to pass up to £3,000 a year to just about anyone you choose, tax free. It’s important to keep within this limit or HMRC may find fault. It’s also possible for any unused allowance to pass over to the next year – you can only do this once, however.
Arranging your finances in advance of death can be a legal minefield so it’s always worth getting good advice.
If you’d like to know more, drop us a line on 01625 540033 We’re always happy to chat.