The New Year is often a time for taking stock of your situation, and you may wish to start thinking about how you wish to pass your assets down to younger generations.
This could include Inheritance Tax planning, updating your will and nominating beneficiaries for your pension funds, as well as writing a Lasting Power of Attorney.
Whilst Inheritance Tax generally applies at 40% on assets valued over the nil-rate band of £325,000, your tax liability depends on factors such as whether you are married (or in a civil partnership), whether you are leaving any assets to charity, gifts made in your lifetime and whether you are eligible for the residence nil-rate band.
One way of removing assets from your estate is to gift capital to individuals or invest using a trust, although this usually takes seven years to fall outside of your estate for tax purposes. There are also investments available whereby the capital can potentially benefit from Inheritance Tax relief after just two years.
If you would like to consider Inheritance Tax planning, please do let us know and we will be happy to help devise a tailored strategy for your circumstances.