With the continual increase in property values, it is more likely that your estate will have to pay tax. There are things you can do to ensure you are not caught in the Inheritance Tax Trap unnecessarily.

The current threshold for exemption of tax is £285,000 (2007) and this is normally increased every year. However, it has not traditionally been increased to cope with escalating property values. By the time you add in any life assurance and / or investment plans it may not be long before that threshold is breached. Any amount above this threshold is taxed at 40%.

You need to decide how much (if any) of your estate gets passed on to your family and friends. Then with careful planning and the use of simple but effective trusts in conjunction with a will you can reduce the amount of tax that your beneficiaries will have to pay when you die.

It may be that you are also concerned with the cost of care on old age. Potentially this carries a greater threat to your estate. With means testing, the vast majority of your assets could be be used to pay your fees in nursing homes. With professional advice the value of your estate could be preserved and care expenses covered, the need for advice is crucial.

We offer a professional service covering Inheritance Tax and Estate Preservation. Please contact us to arrange an appointment.