Looking After Tax & Estates

Under current legislation any estate above £325,000 - or in the case of a married couple/civil partnership a combined estate of £650,000 - is subject to Inheritance Tax at 40% and this can have a very significant effect on the eventual values received by beneficiaries.

Wills need to be structured to maximise the benefit of these allowances and protect assets, particularly property assets, against the impact of an increasing need for long term care.

Specifically:

1. All Wills written prior to April 2006 should be reviewed against the background of the 2006 and 2008 Finance Acts
2. Pension funds should be reviewed to avoid residual values being trapped within taxable estates 
3. Shares in private companies should be appraised to maximise the effect of business property reliefs. 
4. Family Trusts should often be considered as a means to better distribute inherited wealth as well as a means to protect it from Inheritance taxes and local authority care fee assessment.

The general principles within which we work are to ensure that both husband and wife have an adequate income to live on, security over a house to live in and sufficient capital for a secure and comfortable retirement.

Within the context of this our planning embraces the tried and tested means of minimising the impact of Inheritance Tax and maximising the tax efficiency of income.