Estate planning is an essential part of your wealth protection. We are here to help and guide you in this complex area of law. Do you know how much of your estate you can leave before having to pay inheritance tax at 40%?
Currently the Inheritance Tax (IHT) Nil Rate Band per person is £325,000. When you die your estate (your personal wealth) will not be taxed if it is below £325,000. Anything above this amount will be taxed at 40%!
If you are married or in a civil partnership then the law allows you to transfer any amount to your spouse/civil partner free of Inheritance Tax, at the same time your personal allowance of £325,000 is transferred and available to be set against the value of the estate when your spouse/civil partner dies. Therefore, on the second death there is now £650,000 available before any tax is payable.
In many cases the family home could take you beyond the Nil rate band on its own. It is important to tot up your current estate value and consider what that may be when you die. It is estimated that by 2030 the average life expectancy for a Man will be 85 years and for a Woman 87 years, so the wealth you may yet accumulate could be considerable. (Article available here). It is only with sound Estate Planning that you can protect your assets for your loved ones. Protecting your wealth after death is essential if you want to guarantee your children or other family members receive your wealth. Do you have a Will?
If you don’t have a Will the law will decide who inherits your estate and this may not be what you want or expect. Supposing you left everything to you spouse/civil partner and they then remarry. What would happen if this ends in divorce or your spouse dies before their new partner?
This is a situation we are seeing more and more in our modern society and it is often the children from the first marriage that are left with nothing. Making a Will is the first step in protecting you estate.
In the same way, if your spouse or partner is left with all the assets and then needs long term care, the value of the estate could be diminished very quickly. The government are spending less and less on social care each year, yet the cost of care is increase more and more because there is now greater demand for care in later life. Did you know the local authority can force your home to be sold to pay these fees! You need to plan NOW, not tomorrow.
We take away the stress with simple and effective solutions. To see how cost effective this is call Atheneys today and protect your family’s future.