What is Inheritance Tax?
- IHT is charged at 40% on all of a persons worldwide Assets over £325,000 (The Nil Rate Band)
- Inheritance Tax accounts for about 0.8% of government income and currently affects 1 in 6 people’s estates
- More and more people are being caught above the nil rate band threshold with IHT raising the Treasury around £2 billion in 2001 and £3.6 billion in 2006
- Over £1 billion a year is paid in inheritance tax which could be avoided.
What are trusts?
Trusts are used to minimise the tax liability of a person’s estate and to preserve capital.
A trust is simply a legal arrangement under which ‘Trustees’ hold assets for the benefit of one or more ‘Beneficiaries’
There are a number of benefits of using trusts:
- To provide for your wife or husband after your death while protecting the interests of your children
- To use inheritance exemptions when you die
- To dispose of a business in a tax efficient way
- To protect the inheritance of young children
- To give away assets during your life but retaining control of them
- Income tax savings can be made
How can Setfords help you?
Setfords Solicitors Estate Planning can help minimise the Estates liability to IHT in a friendly and cost effective way.
We understand that everybody's objectives are different and we advise on a case by case basis after gaining an understanding of your particular circumstances.
The following are just some of the ways in which we can help you to minimise your estates liability to IHT
- The effect of the transferable ‘nil rate band’ for married couples
- Shifting the ownership of assets between spouses so as to minimise your wealth on your death
- Lifetime giving to children and relatives
- The various allowances allowed to individuals during their life and on their death
- Charitable giving that can reduce the value of the Estate below the IHT threshold
- Putting assets into trust so that they are not part of your estate on your death
If you would like to discuss your requirements in more detail please contact us on 01483 408780 or e-mail info@setfords.co.uk
