Not only does the Government tax throughout your working life, it also taxes people on death! Inheritance tax is not necessarily only paid by the richest, and more people could potentially be subject to Inheritance Tax on their death. You maybe wealthier than you think. The value of your home may have increased dramatically over the years and when you add to this the contents of your home, your car, savings, life assurance and any potential inheritances your estate could be worth more than the current £325,000 inheritance tax threshold for a single person (2014/2015). Above this amount your beneficiaries will have to pay inheritance tax subject to certain exemption and reliefs. For example if your estate is worth £450,000 and you leave it to your children, they will have to pay 40% of the amount above the threshold of £325,000 thus the tax bill to the beneficiaries would be £50,000
McPhail Financial Services can advise you as to ways you could potentially minimise your tax burden, which may be able to be done via:
- Making provisions in your will
- Ensuring appropriate use of the reliefs that are available but not commonly used
- Making gifts during your lifetime
- Making use of trusts
- Taking out appropriate life insurance plans
We offer a common sense approach, based on the understanding that estate planning is not solely about tax, helping to ensure that the solutions we recommend give you the flexibility to meet your own financial needs and avoid giving away too much too soon. If you do not take action you could end up leaving too much of your estate to the tax man.
Please note, some forms of tax planning are not regulated by the Financial Conduct Authority.
IHT thresholds and the tax treatment of investments depend on your individual circumstances and may be subject to change in the future