If you are fortunate personally to be worth in excess of £325,000 (tax year 2017 to 2018) and live in England or Wales then your estate will fall into the category of inheritance tax and payment of tax will be sort by Her Majesty’s Revenue & Customs upon your death. Wise financial planning and the use of a last will and testament can be utilized to negate or reduce this inheritance tax liability.
If the issue of inheritance tax clearly does not and will not in the future apply to you then you can forget about the subject of inheritance tax. Bear in mind things such as rising property prices, a substantial cash win, the success of a new business or maybe an inheritance passed on to you could change this situation.
For those of you for whom it presently does not apply yet in the future you expect it will do; then remember some effective methods for reducing IHT (an abbreviation for inheritance tax) are administered and planned out whilst your living. This negates leaving all your plans until later in life when it comes to inheritance tax planning. Don’t leave everything to the future and in hindsight wish you had taken action earlier down the line to shrink IHT upon your death.
For anyone who falls into the inheritance tax bracket Her Majesty’s Revenue & Customs will enforce a massive 40 percent inheritance tax on the proportion of your estate which exceeds the value of £325,000. For example say your worth is £625,000 and no tax reducing ploys were made:
Then inheritance tax owed = (£625,000 – £325,000) x 40% = £120,000.
Enough to make you cry if you were still here to worry about it! Especially when you consider a lifetime of hard work likely went into amassing this wealth and the HMRC took a large chunk of your hard earned money already as you went along. Many would consider Inheritance tax an insult as effectively its taxes upon taxes!
A huge share of the men and women in England & Wales haven’t and won’t enact any inheritance tax reduction strategies throughout his or her lifetime. About two thirds of English and Welsh inhabitants pass away deprived of completing a Last Will and Testament. For the tax office this often presents good news. For their loved ones left behind the news won’t necessarily be so great.
The tax man doesn’t expect to wait to collect their dues. The departed’s material goods may require being traded to raise cash to the pay tax money owed. Where such goods can’t be sold quick enough to pay the inheritance tax, then the departed’s family may have to loan cash to reimburse the tax. This can obviously cause the family a huge amount of hassle and upset at what is already a difficult time.
The demised person’s lack of forethought and planning for the future is hardly going to be impressive especially when you consider that the family might struggle to raise the cash then the family residence may be at risk of being traded for money as this likely holds a sizeable chunk of worth which is a guarantee of payment to the tax parties yet adds greater stress to the lives of their family.
So it is a wise move for you to utilize your time to consider, enquire, learn and take action to find ways to draft your own last will and testament; discover what inheritance tax reduction measures you might adopt to deter a tax seize by the Inland Revenue; plan and organize the safeguarding of your family upon your departure or obtain appropriate and validated professional advice.
Far too many people in Wales and England lose out on the prospect of organising their property and estate to create the maximum inheritance tax shrinkage, making certain that the Inland Revenue gets the least possible whilst simultaneously the largest amount of their entire wealth as feasible remains available to provide for his or her loved ones.
Be smart, be clever and set yourself above the many who fail to take action. Start building your plans for a future which will safeguard your family’s future and create a spot on Last Will and Testament that supports your plans.
The more you learn and know the more you will spot upsides that will be setting your property and estate in perfect order making it increasingly difficult for the Inland Revenue to get their hands on your wealth. Over time your constant momentum in the right direction will result in an exhaustive English or Welsh property and estate planning tactic.
Remember the end aim will be to do the best by the loved ones you leave behind. Since they are the ones who have to live with the plan you’ve created so it needs to work in connection with their requirements and needs. Thinking through and discussing what problems and issues they will have to overcome and contend with when your gone will be a good place to start; before creating your last will, doing your estate planning and doing your tax planning.
Choosing The Right Person To Be Executor.
Why Have Multiple Executors?
Appointing An Executor.
Rules Surrounding Guardianship
Selecting Your Guardian
Appointing A Guardian
Money For Child And Guardian