Secure their future by acting now – Michael LansdellFeatured Products Promotional Features
Posted by: The Probe 25th September 2018
Don’t put off Inheritance Tax (IHT) planning! With guidance, you can give your family a more secure future, so you can all enjoy the fruits of your hard work.
There are various ways to keep IHT to a minimum. If you are married, or in a civil partnership, any unused nil rate band will be transferred to your surviving partner. Estates up to £325,000 are exempt from IHT. The same does not apply to ‘common law’ relationships, as they are not recognised in the same way.
What about property? Well, the residence nil rate band (RNRB) increased to £125,000 on 6 April 2018. RNRB was introduced in 2017/8 and is due to increase every year by £25,000 until 2020/21. When a residence (which doesn’t even need to be the deceased’s main residence) is passed on to a direct descendent, a spouse or civil partner, this allowance is available. Of course there are exemptions, but it most cases, it makes passing on a property worth it. Business properties are treated differently, so make sure you get advice. If you are setting up a dental practice, it is worth considering IHT early in the process.
Lifetime gifts can escape IHT altogether, so if you are in a position to afford them (in other words, you are left with enough to support your own needs!), this is another avenue that could be worth pursuing. You must survive for at least the following seven years, though, so insuring against any liability in the event of an earlier death is a good idea. Alternately, you could make payments into a discretionary fund, up to the value of £325,000. IHT can be reduced or even eliminated altogether; the ‘seven years’ rule applies again.
Death benefits payable from most registered pension schemes are often outside IHT. But before taking anything out of your pension fund, it is wise to look at other assets first. Enlisting the services of experts with the knowledge to help you make good decisions is crucial. Lansdell & Rose can offer practice owners help with IHT planning, taking all assets into account. They will advise on solutions that suit your current circumstances and that will benefit your loved ones the most.
To find out more, call Lansdell & Rose on 020 7376 9333,
Or visit www.lansdellrose.co.uk
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