Inheritance Tax (IHT) is the largest amount of tax that you and your family will ever pay yet most people do nothing about it and just leave their executors to pay after they are gone. The tax is payable at 40% above £350,000 and £650,000 for a couple so even for modest Estates the amounts can quickly get quite large.
It is however possible to plan for this and take measures to reduce it. I would be pleased to help you and your family review and prepare for this.
This will include a detailed discussion and full explanation of what is possible and sensible given your circumstances.
Planning is possible and will include amongst others the following techniques that you wish to implement.
- Maybe just give away your assets now but beware what happened to King Lear?
- How to use trusts / companies / partnerships to pass properties to the next generation without capital taxes liabilities?
- Gifts out of income and how to affect these.
- Try not to waste either spouse’s nil rate band – the amount charged to tax but at zero percent.
- Can you gift assets to grandchildren (in trust whilst under 18)? – to avoid assets being taxed at each successive generation
- Possible IHT exempt investments.
- Is insurance a worthwhile solution to reduce IHT?
- Other planning ideas as appropriate.
There will be follow-up and liaison with you and your solicitor as necessary.
These services would be delivered as follows.
1. Review and calculation of the potential tax liability now
2. Meeting to discuss and go through all these matters.
3. Report in writing in layman’s English but with full legal technical reasoning if required.
4. Detailed Action plan as to how to proceed.
5. Review of any legal documents / contracts needed
6. Advice and attendances throughout the period.
This may not be for you but please feel free forward this on to friends and relatives. They can rest assured that we will keep their affairs complete confidential as we do for all clients.
For this consultancy piece of work our firm’s fees would be £800 plus VAT = £960. For those we sign for this before 31 August 2016 we are pleased to make a donation of £200 to a charity of your choice.
This fee is payable £400 + VAT = £480 on commencement and the balance on delivery of the written advice to you.
Please call Philip Raj on 0208 952 8989 to discuss how to take this further.