Wills and Probate

In simple terms, Inheritance Tax is currently payable on your death if your estate exceeds £300,000*. Your estate is the difference in value between your assets and your liabilities (e.g. Mortgage, loans etc.) and if this figure exceeds £300,000*, tax is payable at 40% of the excess, subject to any exemptions and reliefs that may be available.

£300,000 is the nil rate band for 2007/2008, but is subject to change in future tax years as follows:

• £312,000 - 2008/9 
• £325,000 - 2009/10 
• £350,000 - 2010/11

There is a common misconception that only the very wealthy should be concerned about Inheritance Tax.  However, with the recent rise in property values, increasing numbers of people are now facing potential liabilities.  When you add up the value of your house, savings and investments, and your personal possessions, you may be surprised by how much you are actually worth. What can be done to reduce any potential Inheritance Tax liability?

1. Ensure that you and your spouse have tax efficient Wills that clearly state how you wish your estate to be distributed. 
2. Consider reducing the value of your estate by making regular gifts during your lifetime. 
3. Consider using trusts as a way of making flexible and tax efficient estate planning provision. 
4. Arrange suitable and adequate Life Assurance cover. 
5. Consider severing your beneficial joint tenancy and disposing of your share in your Will.

If you have any questions or would like to know more please call Leanne Harris on 01273 716441 or click here