Jonathan Crowther has been advising our clients for over 30 years and specialises in family tax planning. He recently was asked the following questions and we thought we would publish his reply…
First of all, how do we know if IHT will apply to our own Estate?
If the value of your Estate is over £325,000 (£650,000 for a married couple) you need to consider IHT.
Recently the Residence Nil Rate Band has been introduced, does that affect who is liable for IHT?
This is an additional relief (above the nil rate band) introduced for deaths after 5 April 2017 to allow you to pass on the family home to the next generation. There are complex rules to comply with but currently this relief may provide a further £100,000 tax free amount (£200,000 per couple) if your family home is included in your Estate and worth over these amounts. Please note for Estates over £2m the relief is reduced and eventually withdrawn.
How important is it to have a Will?
A Will makes your wishes clear and states what should happen to your money and assets after you die. If you do not have a Will then the law will decide which may not be in line with your wishes. A Will also helps protect assets for the next generation and minimise IHT for the family.
And finally at what stage should we consult an expert on IHT?
If your Estate with your spouse is in excess of £650,000 then it would be worthwhile speaking with either your Accountant or Solicitor.
Crowthers offer a free initial meeting for any individual that would like a IHT review.
For more information contact Jonathan Crowther at our Ledbury office on 01531 631 500