Estate Planning – Your guide to inheritance tax and tax planning
With increasing house prices and hence equity, tax and estate planning is something everyone should think about.
There are many reasons that a person needs to consider Estate Planning, here are some common reasons:
Providing for children
Sometimes leaving a Will is not sufficient to ensure that the monies you seek to give to your children are protected. With Estate planning you can ensure that your children are protected from unnecessary tax, have a home to live in and have some one to manage their affairs if they are minors.
Reducing Inheritance tax liability
With a charge rate of 40% nearly half your Estate over the Nil rate band could go the Government by way of tax.
Life time gifts, Trusts and careful Estate planning whilst you are alive could ensure that the majority of your assets are protected from Inheritance Tax liability when you die
Contemplating Nursing care
The unfortunate fact is that we will grow old and many of us will be thinking about nursing homes. People forget that these nursing homes need to be paid for and if you have substantial assets, the Local Authority may seek to take this to fund your care. This could result in a substantial reduction on what you can pass on when you die.
