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If you do nothing the tax-man may get the lion's share
Inheritance tax
Inheritance tax is hanging over more and more of us each year.
This is largely due to the rise in residential property values. The IHT allowance in 2008/09 is £312,000. Depending on the value of your house and other assets, this may not be a very big allowance. If you die leaving an estate worth more than £312,000 and you have no spouse your estate will be liable for IHT at 40% on the balance.
The inheritance tax threshold is due to increase again in 2009/10.
Even if you do have a spouse to inherit then this only puts off the time when tax will be payable because the issue will arise again on his or her death. It is worth doing some forward planning with a tax adviser to decide whether it would be appropriate to gift some of your estate, perhaps to children or other relatives, during your lifetime; or possibly redirect assets up to the value of the nil rate band into a trust on death.
One thing is for sure with all forms of tax; if you do nothing the government will use its considerable powers to ensure that a share of your hard earned wealth ends up in their coffers.
Why not contact us and review your inheritance tax planning?