Plan ahead to reduce inheritance tax liability
by Sarah Ashcroft
Reducing an inheritance tax liability is something that many people like the idea of, but relatively few actually make the effort to achieve.
The key is to think ahead when writing a will
to determine how much, if any, inheritance tax is likely to be paid and how much it can be lowered by.
Ed Hill, a partner at Baldwins Accountants, explained that more than £1 billion will be wasted this year due to poor planning.
Speaking to the Express & Star, he emphasised that as much as 40p out of every pound can be taken by the government on estates worth over the £325,000 threshold.
The expert stressed that when writing a will
, any money that is left to a spouse or partner is not liable for inheritance tax, even if it is over the £325,000 boundary.
In order to establish whether inheritance tax is due, the first step is always to value the estate.
- Making a Will News: Get a tailor-made Will for you at a fixed price with Lawpack's Bespoke WillService
Published on: October 14, 2011
Did you like this article? Share it!