Inheritance Tax Planning
Johnston Smillie can help you plan for, and minimise, Inheritance Tax Liabilities.
They say there are only two guarantees in life: Death and Taxes. And when it comes to Inheritance Tax Planning, those guarantees come into sharp focus.
In life, most people wish to pay as little tax as possible, and this desire often extends to potential tax liability once they’ve passed on.
When you die, there is a chance your estate (your property, money and possessions) could be subject to Inheritance Tax (IHT) if it’s worth more than the IHT threshold. With the increase in property value in recent years, Inheritance Tax is now something more and more people need to be aware of.
But with careful planning, you can reduce your IHT liabilities and remove the stress and worry from what will already be a difficult time for your loved ones.
Do I Have to Pay Inheritance Tax?
Typically, you won’t have to pay Inheritance Tax if:
- Your estate is valued at below the £325,000 threshold, or
- You leave everything to your spouse or civil partner, a charity, or a community amateur sports club
If you’re married, or in a civil partnership, and your estate is worth less than the £325,000, any unused threshold can be added to your partner’s threshold when you die. As a result, their threshold can be as much as £650,000.
As it stands, the standard Inheritance Tax rate is 40%, and it is only charged on the part of your estate that’s above the £325,000 threshold.
The Benefits of Working with JSCA
We understand that even thinking about Inheritance Tax liabilities can seem a bit morbid, but it is of tremendous importance. The last thing you’ll want to leave your family is a huge tax bill and no way of paying it.
JSCA can help guide you through what can be a complicated process – making the necessary arrangements in conjunction with your lawyer – so that you have complete peace of mind.
You’ll meet with our highly knowledgeable staff, who will speak in plain English as they take you through your options in order to minimise any Inheritance Tax liabilities that may arise in the future.
These options can include:
- Lifetime gifts
- Charitable giving
You should be aware that when it comes to IHT, long-term planning is crucial, as some of these options can take up to seven years to take effect.
Helping You Plan Ahead
For effective Inheritance Tax Planning, it’s important that you be proactive. And we can help you do just that.
We’ll sit down together – either in our offices, or yours – and discuss the ins and outs of your own tax situation.
Only then will we recommend, in the clearest possible terms, the best plan to help you minimise your Inheritance Tax liabilities.
Contact us today to find out how we can help you plan ahead for you and your loved ones.