Inheritance Tax Take Breaks £5bn Barrier

HRMC collected a record £5bn Inheritance Tax (IHT) from June 2016 – May 2017. This is a 9% rise on the previous year. Most media and industry commentators attribute this increase to the continuing rise in property prices and the freeze on the IHT threshold of £325,000.

So, if your estate (everything you own – your house, money (including pensions) and possessions) has passed the £325,000 IHT threshold, planning how to ensure as much it as possible is left to your family has never been more vital.

The first step, of course, is making a Will, and our will writing app makes writing Wills online that are legally binding quick, easy and affordable.

So, decide whether to write Mirror Wills with your partner or a Single Will. Single Wills are sometimes the best choice, even if you are married or in a committed relationship.  We’ve previously posted about when and why a Mirror Will is the right choice for a couple ((https://activewills.com/blog/mirror-wills-married-couples)) and highly recommend reading this article. Once decided, start to complete our online Will form. Before you do though, please consider opting into the legal check we offer for just £35. 

If you do opt-in to this service, our Will writing experts can give you professional advice if there is a better way to structure your Will tax-efficiently. A step they might recommend is ‘gifting’ (regular gifts give from your post tax income can be IHT free if you meet certain criteria). More and more people are gifting to help their children and grandchildren buy properties now rather than waiting until they inherit a tax-reduced amount (for so many it is the only way they will make it onto the housing ladder).  Garry Bushell recently wrote about this in his article Millennials and Inheritance on My Estate Planning Expert (a very useful resource if you are beginning to learn about estate planning).

Our experienced Will writers can also advise on how to optimise your pensions tax-efficiently; how to ensure you have a Lasting Power of Attorney that covers all your wishes, protects your family and alleviates fear - as well as advising whether placing your estate in a Trust scheme might help to protect your family, your wealth and your wishes still further. 

So, to summarise – if your estate has broken the £325,000 barrier – you’d be silly not to make a Will – unless, of course, you’re happy to gift your wealth.