IT IS not just land-owning aristocrats and pop stars that have to pay inheritance tax (IHT) nowadays.
A tenth of all estates will be subject to IHT by 2019, according to the independent Office for Budget Responsibility. That means the figure will have doubled since 2013. Tax is payable at 40 percent of all your assets over a value of £325,000, which includes your home.
And just look at average house prices in the UK. It stood at £209,000 in April, 2016. I know there are major differences across the country. For example, in the North East of England it’s £121,000 and in London it’s £470,000.
So it is more important than ever to seek financial advice when preparing your will. But it’s not just you that needs to consider your options. We recommend that advisers, family members and other beneficiaries should be involved in the will-writing process.
Pension freedoms mean that some people have more cash available. And more cash means more tax. Financial advisers and will writers need to be aware of IHT and need to be discussing options with all interested parties.
Heritage Will Writing does take IHT into consideration. Give us a ring today on 02380 879243.