Understanding and planning for Inheritance Tax (IHT)


How does IHT work?

Your worth, which comprises of your cash, investments, property and life insurance policy payments is assessed and calculated by the Government when you die.

Any debts are deducted from this to give the value of your estate.  If the amount is over £325,000 (the inheritance tax threshold, or “nil-rate band”) the estate will owe 40% of anything above this.

What should you do?

IHT is a complicated area.  There are other influencing factors such as your main residence and whether you are married.

We have qualified advisers who can help you discuss inheritance tax planning along with your savings, investments, pensions and other retirement plans.  In summary we can help you:

  • Understand IHT and your liability
  • Offer life insurance policies that cover the amount of tax you may have to pay
  • Signpost you to Will writers, if you don’t have one
  • Explain any exemptions to these allowances such as gifts and charitable donations

Next steps

If you would like to discuss this, or any other financial matters, contact us on 01905 779697 and speak to our dedicated Wealth Management team.

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