Estate Planning
Many of us will be subject to Inheritance Tax due to the rapid rise in the value of homes.
For 2011/2012 an individuals nil rate band or tax free allowance is £325,000 and
anything in excess of this will be taxed at a rate of 40%. Married couples and
civil partners can have a combined estate of £650,000 before becoming
liable for Inheritance Tax. This however, is not the case for unmarried
couples but taking advantage of both persons nil rate band can be
done by using a discretionary nil rate band trust in your will.
From the 9th October 2007 Spouses and Civil Partners are able to
transfer their nil rate band allowances so that any part of the nil
rate band not used when the first person dies can be transferred
to the survivor and added to their allowance.
Inheritance Tax is a very complex area of Financial Planning.
It incorporates difference types of policies for specific purposes such as:
Estate Planning requires specialist advice and would need to be structured
carefully over a period of time. However, once your carefully structured plan
has been implemented, it can be reviewed annually as part of
Portfolio Management Service.