Is your Will up to date?01 Jun, 20213
The importance of an up-to-date Will can never be underestimated from both a legal and ...
The importance of an up-to-date Will can never be underestimated from both a legal and tax perspective. Our tax experts work closely with specialist lawyers to ensure that any Inheritance Tax (IHT) planning undertaken is as efficient as possible.
The IHT nil rate band remains frozen for the foreseeable future at £325,000 for an individual and £650,000 for married couples and civil partners. In the context of rising house prices, those thresholds are not as high as they might at first appear.
As of May 2022, the Office for National Statistics (ONS) figures show that the average house price in the UK is £283,000 and values continue to rise. The scenario we face is simple. We have a generation of adults who are either fully retired or are about to retire. They have worked hard to accumulate a good level of assets, in many cases, in terms of their main homes. It is envisaged that these assets will pass to their children, who may already be in their 30’s and 40’s and may have significant asset values of their own. Before long, family estates can be significantly exposed to unwanted tax charges.
In addition, families these days often own a mixture of business and non-business assets. It is important to plan to balance these assets, to maximise and preserve any reliefs available from an IHT perspective.
A tax-efficient Will can help with all of this, as well as ensuring that assets get passed on to the family in accordance with the deceased’s wishes.
If you would like more information or would like to discuss your tax affairs in general, please contact our Tax Experts.