Estate Planning

Unfortunately even after we die we are not free of the clutches of the taxman. Everything that you leave in your estate over £325,000, the nil rate band, is subject to inheritance tax (IHT) at 40%.

Before November 2007, when one party to a marriage or civil partnerships died, any nil rate band left unused was lost. Recent changes in inheritance tax legislation allow you to transfer any unused part of your nil rate band of chargeable estate to your spouse or registered civil partner (assuming no chargeable transfers are made at the time of death or during the previous seven years) meaning, on current thresholds, a total of up to £650,000 can be distributed tax free when the second person dies.  However, for many this is ‘the tax cut that never was’ as married couples and registered civil partners could have previously gained this advantage by being well advised and planning in advance.

Nobody wants their beneficiaries to receive a hefty tax bill, particularly when there are measures that can be taken to reduce or even eradicate it.  With the rise in house prices over the last few years it is not just the wealthy whose assets are worth more than the available nil rate bands.  Sense can help you to avoid paying too much tax by combining the use of wills, trusts and other tax mitigation techniques, and also advise on ways of funding for future inheritance tax liabilities. This service is not regulated by the FSA.

There are many other potential threats to your children’s inheritance. Re-marriage of a spouse, divorce of a child and long term care are just three reasons your estate may not pass to your loved ones. Your assets could end up in the hands of your local authority, HMRC, or could even end up passing outside your family.  We work closely with our colleagues in Sense Legal Solutions to ensure that, with prudent planning, your hard earned assets pass to those you love

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