It is remarkable how much tax people are paying unnecessarily in the absence of properly prepared Will and tax planning. With house prices falling and following changes introduced by the Autumn 2007 budget, in some cases a combined tax-free sum of £650,000 is available to offset against the estate on the death of the surviving spouse or civil partner. It is important to take advice on how this affects you sooner rather than later as the exemption is not granted automatically; it must be claimed, and paperwork in support of the claim produced. With Inheritance Tax no longer just for the rich, our specialist Solicitors strongly advise you to consider taking legal advice,and in particular to consider the following:
- Transferring assets to your spouse so your estates are about equal
- Transferring away surplus assets either by gift or transfer into trust
- Consider making the proceeds of any Life Assurance policies or pensions you may have payable directly to your spouse and children to keep the value of the policy from falling into your estate for tax purposes
- Signing a Lasting Power of Attorney under which you give the right to a trusted person to deal with your affairs should you become incapacitated.
- If your children are under 18 years old you should consider appointing a guardian for them under your Will.
For legal advice on inheritance tax planning from an expert Wills, Trusts and Probate Solicitor contact our Salisbury, Andover, Amesbury or Verwood offices today.
