Wealth Preservation & Inheritance Tax
What is Inheritance Tax?
Inheritance Tax is usually paid on an estate when somebody dies. It’s also sometimes payable on trusts or gifts made during someone’s lifetime. Most estates don’t have to pay Inheritance Tax because they’re valued at less than the threshold, but tax is payable at 40% on the amount over this (or 36% if the estate qualifies for a reduced rate as a result of a charitable donation). Inheritance Tax is payable by different people in different circumstances. Typically, the executor or personal representative pays it using funds from the deceased’s estate.
Unfortunately, many people still leave money every year to the Inland Revenue when they perhaps need not do so. Your Stirling House Partner will be able to offer you expert professional advice in this area with a view to minimising tax whilst maximising what you leave to your estate.
The Importance of Wills & Trusts
Making a Will and being sure people know where to find it is the first step to making sure that your estate is shared out (after Inheritance Tax has been paid) exactly as you want it to be when you die.
If you don’t leave a Will, your estate will be shared out among your next of kin according to a strict order of priority called the ‘rules of intestacy’. This means that people you want to benefit from your estate – such as a partner you are not married to or in a registered civil partnership with – may not receive anything. Most local solicitors offer a Will Writing Service.
Trusts are also often used in conjunction with Wills. For example, some Investments may be placed into Trust to ensure that the right asset reaches the right beneficiary at the right time. Your Stirling House Partner will be able to offer you constructive advice in the area of Trusts.