Inheritance is one of those words that can make anyone feel good, get excited, and start planning for those things they always wanted to do. On its own, this is obviously a wonderful event in life. But when you use the word “tax” in conjunction with the word “inheritance,” you have a completely different reaction. The key is to reduce the tax impact as much as possible, which is the goal for anyone with any type of revenue or income.
Most people don’t worry much about this issue for one reason: They believe inheritance tax (IHT) affects only the wealthy. This is true only in a relative way because it depends on your definition of “rich.” In the UK, for example, the first £325,000 of the estate is not subject to tax, but any amount more than this will be taxed at the IHT rate of 40%.
If you have questions or concerns about your status in relation to this tax, you should get in touch with a member of the experienced, knowledgeable inheritance tax solicitors. You’ll be working with individuals who can provide a solution to this and many other legal issues. Advice and recommendations are always tailored to each client, so the process is cost-effective.
You may find that the value of your home is enough to make your estate subject to IHT, though a legal professional will help you understand the exemption applied to your primary residence. It’s important to have legal guidance on how you plan for distribution of your estate, so you can take full advantage of this exemption. This can be determined by the way you prepare your will.
To reduce your tax liability, you should work with a solicitor to prepare trusts, will, and other methods for settling your estate. The list might include taking advantage of gift allowances, setting up a trust, or using certain exemptions. This is just the beginning of the ways you can significantly reduce your IHT obligation, so it’s very important to work closely with someone who understands the changes in tax law that take place each year.
When you consult with legal experts to discuss the impact of inheritance tax, you also have access to a range of essential services, including guidance on the preparation of your will. Keep in mind, if you don’t make a will to direct how your assets will be distributed to family members and loved ones, your estate passes on according to existing law.
It’s important to have the help of a legal professional who understands the process of administering an estate. This is very important if the deceased individual doesn’t have a will. Family members will benefit from the advice and guidance of the right solicitor.