Under current legislation, you are allowed to leave only part of your estate to your beneficiaries without inheritance tax becoming payable on your death. Your estate is made up of everything you own including your property, savings, investments, cars, and personal belongings. The inheritance tax rate is currently 40% on everything above the threshold of £325,000 per person (2021/22 tax year). This tax is payable by your beneficiaries and is due before your estate has been distributed.
There is an additional ‘Residence Nil Rate Band’ threshold of £175,000 per person if certain conditions are met.
Through careful planning within your Will, we can try to reduce the amount of tax payable by your beneficiaries.
If you would like to know more about inheritance tax planning, please contact Tim Poole at TP Wills to arrange a free, no obligation meeting on 01736 758418, 01736 851142 or 07900 323939.