How to Leave the Best Possible Legacy for your Heirs
There is a common perception that inheritance tax only affects the very wealthy. It can come as a nasty surprise, then, to find that, when you pass away, your estate could be of interest to the taxman – not least because you’ve probably been paying income tax on the money you’ve used to accumulate your assets. It all seems rather unfair.
If you combine the constantly rising value of your home with assets such as a collection of rare stamps, antique jewellery, a smart car and your savings in the bank, you may find that it all adds up to a lot more than you imagined and takes you beyond the inheritance tax threshold of £325,000.
Thinking now about what happens when you die can be upsetting – yet it is the best way to be confident of securing the legacy you would like for your heirs. It’s vital to take financial advice from an inheritance tax specialist in order to protect your assets and legally mitigate the amount you may be required to pay.
Our advisers will guide you through the many ways to reduce your potential tax liability. Perhaps the most important is writing a will and keeping it up to date with regular reviews, to ensure you remain in control of who gets what and therefore how much tax may be payable.
You can also reduce your potential inheritance tax liability by gifting or donating money while you are still alive. The taxman allows you to give a number of small gifts and donations every year – which, as well as reducing the potential impact on your assets when you die, means you can enjoy the smiling faces of the lucky recipients!
Research has shown that we could avoid giving the taxman more than £500 million each year if only we planned more prudently for the impact of inheritance tax. However, it is a complex tax area and few of us would feel confident in such planning without expert assistance.
Financial Foresight are specialists in effective inheritance tax planning – contact us today to avoid adding to that figure.
