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Inheritance Tax can seriously damage your wealth!

Inheritance Tax Can Seriously Damage Your Wealth!

Lorraine Snyder LLB, a former practising solicitor and now estate planning specialist with Collective Legal Solutions provides the following insight into inheritance tax planning:

A crucial element of tax planning is drafting your Will so that your estate is distributed between your spouse, family and other beneficiaries in a tax efficient manner. Many people put off this type of planning because they believe it will be too expensive or fear they will lose control and access to their carefully acquired nest egg. Indeed, it is often not sensible to cause anxiety to your spouse over future financial and residential security by gifting the bulk of your estate to other beneficiaries simply to save inheritance tax.

The solution for many taxpayers is incredibly cost effective, does not necessitate any lifetime gifting and could achieve a saving of up to £120,000 for their beneficiaries!

To benefit from this tax saving, couples need to arrange nil-rate band discretionary trusts in their wills. It is important that assets between couples are equalised, so that they each hold up to the nil-rate band (300k for the tax year 2007/2008) in their separate names. This often requires the change of ownership of property from being held jointly to tenants in common The use of this type of Will may be the only step necessary for many people to avoid the inheritance tax trap. However additional planning may be necessary for those whose estate exceeds £600k

For further information, please contact 01706 239 040 or email trish@insightpropertyinvestment.co.uk

Lorraine offers guidance on estate planning by providing free home/office visits. She is happy to review the suitability of any existing Will as well arrange the preparation of Wills and other legal documents.

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