Advertising feature: When somebody close to you dies, it is not just an emotional time, but a time when much needs to be sorted regarding financial affairs. It is not a simple task.
Hopefully, the deceased had an up to date will. The first step in estate and inheritance tax planning. Regrettably, many do not, leading to difficulties that could have been avoided.
Generally, if a couple are married or in a registered civil partnership and they leave their entire estate to each other, no tax will be paid. Unmarried/unregistered couples do not qualify for these exemptions, making planning even more essential.
Currently, the first £325,000 of an estate (your nil rate band – NRB) has no tax charge. For a married/registered couple this means an allowance of £650,000 between them. Any amount exceeding this, is potentially subject to a 40% tax charge on second death.
On 6th April 2017, the Residential Nil Rate Band (RNRB) was introduced.
• It is in addition to the NRB
• Applies to main residences that are left to children/grandchildren
• £175,000 or £350,000 for a married/registered couple (20/21)
• Increases the inheritance tax-free amount for married/registered couples potentially to
£1 million and £500,000 for unmarried persons leaving their main residence to children/Grandchildren
Apart from using these allowances, there are several ways to help reduce potential tax. Investments in trust, allowable gifts, or payments towards insurance policies ensuring money is available to meet any potential tax liability. These are considerations many people are unaware of.
Inheritance and estate planning are complex matters and need professional advice to work through your options. Contact me to arrange a full financial review – face to face or virtually, to ensure you have laid a smooth path for your beneficiaries.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is generally dependent on individual circumstances.
Trusts are not regulated by the Financial Conduct Authority.
For more details please contact me on 07946 183512
sherald.waterhouse-trew@sjpp.co.uk
The Partner Practice is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.’