Estate Planning and Mitigation

The Importance of Estate planning and inheritance tax

Estate Planning and Inheritance tax planning used to be an activity confined to the very rich.

However here at Iain Longworth Partnership we find that this is no longer the case. Families and individuals with a moderate level of wealth now need to plan ahead to ensure that their assets are passed on to their loved ones as tax efficiently as possible.

Estate Planning and inheritance tax mitigation is only one of the factors that you need to consider when looking into passing on your estate to loved ones. Iain Longworth Partnership defines Estate planning  as passing your estate to the people that matter to you in the most tax efficient way.

Estate planning options

Inheritance tax advice in Lancashire

Inheritance Tax tips for minimising liability

Put an end to uncertainty. Give your family the security of knowing that your will has been written and that other legal instructions are in place. Make sure your wishes are carried out as arranged.

It is worth considering when Inheritance Tax actually applies. Every person has a tax free allowance of £325,000 which is also known as the nil rate band. Inheritance Tax only applies to the value of the estate above this at a rate of 40% on death.

Transfers between husband and wife are exempt from Inheritance Tax and if the nil rate band is not used on the first death the value of the estate on the second death that will be exempt from Inheritance Tax doubles to £650,000.

You can give away up to £3,000 a year, which is known as your annual allowance. This will be immediately exempt from Inheritance Tax . There is also a small gift exemption, meaning you can give up to £250 to as many people as you like.

You can also gift in other ways to keep your liability down such as making wedding gifts up to £5,000 for parents and donations to qualifying charities.

You can make gifts out of your income free from Inheritance Tax. For the gifts to qualify the gifts must be part of your normal expenditure and be made out of your income. They also cannot be seen to reduce your standard of living otherwise they will not qualify. This exemption will be claimed by the executors of your estate hence the importance of making a will
The  simplest way of providing funds to pay the inheritance tax liability is to take out  a whole-of-life insurance policy.  The payment of the death benefit will happen immediately following death and the funds will be available to pay the inheritance tax liability without any need to wait for grant of probate.

Making a will in LancashireWhy Write a Will?

Put an end to uncertainty. Give your family the security of knowing that your will has been written and that other legal instructions are in place. Make sure your wishes are carried out as arranged.
Take advantage of a company here at Iain Longworth Partnership that specialises in preparing legal documents for people like you. When we take instruction from you our system gives you the most efficient and modern method of putting your affairs in order.
Discuss your wishes in comfort and privacy of your own home. Arrange to give the instructions for your legal will documents at a time that suits you.
We have fixed fees for writing your will and producing the documents. Really all family arrangements can be accommodated with our comprehensive range of options.
Using the latest technology means that your personal information and instructions can be processed rapidly and accurately. All client details are held secure so your information is only accessed by our staff.
All wills and legal documents are created by us. The clauses used are well established legal precedent, which ensures every document produced reflects your wishes in the way you intended.

advice on probate in LancashireWhat is Probate

Probate is the term which is commonly used when we talk about applying for the right to deal with a deceased person’s affairs also called administering the estate.

We use different terms depending on if the deceased person left a will and where they lived.

A grant of probate is  needed when the person who dies leaves one or more of the following:

£10,000 or more, stocks or shares, certain insurance policies or property or land held in their own name.

Estate planning advice in Lancashire How much of Your Estate would go to the tax man?

Estste Value Inheritance Tax Bill
Less than £325,000 Nill
£400,000 £30,000
£500,000 £70.000
£600,000 £110.000
£800,000 £190.000
£1,000,000 £270.000

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Get Independent Financial Advice from Iain Longworth Partnership

Get independent financial advice on Inheritance Tax, Making A Will, Probate and your EstateContact Us Today