Inheritance Tax (IHT) is the tax levied on the value of an estate on death if it exceeds the nil rate band. Your estate is the value of all your assets e.g.
house, investments, car, furniture, cash etc.
The current nil rate band for the tax year 2015/2016 is £325,000. This is the first slice of your estate
which is taxed at 0% hence the name nil rate band. The value of everything you own above this
amount is taxed at 40%. IHT normally has to be paid within 6 months of death otherwise interest is
charged on the amount owing.
Given that many homes are now valued in excess of the nil rate band IHT is no longer a tax affecting
only the wealthy.
There are many methods of reducing the liability that your beneficiaries may need to find and
planning is essential. Doing nothing is not an option if you wish to save IHT.
Planning methods can include any, or a combination, of the following:
• Holding properly drafted Wills
• Making use of exempt beneficiaries
• Making use of exempt transfers
• Ensuring Life policies are written in Trust
• Placing funds in Trust
• Potentially Exempt Transfers
Solutions are individual and we can provide bespoke expert financial advice to help you reduce the IHT your family may need to find.
Please note that trust and tax advice is not regulated by the Financial Conduct Authority.
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‘Here to help you plan for the future with solid Financial Advice’
7 Lords Drive, Telford, Shropshire, TF2 9UE       Telephone 01952 299512  Mob 07985 414252  Email info@freeman-ifa.com   
7 Lords Drive, Telford, Shropshire, TF2 9UE       Telephone 01952 299512  Mob 07985 414252  Email info@freeman-ifa.com