Have a question? Call us on 01625 503 444
Have a question? Call us on 01625 503 444
This article was published on July 14th, 2022
Inheritance Tax (IHT) is a tax imposed on a deceased person’s estate, which includes all of their property, assets, and money. The usual rate of inheritance tax is 40%.
Inheritance tax does not apply to every estate. Only estates with a value greater than the threshold set by the government must pay IHT. The current threshold is £325,000. Executors must pay up to 40% of the value of the deceased’s estate above the tax-free allowance.
The new Inheritance Tax Laws that came into force in April 2017 issued that direct descendants of the deceased would pay less inheritance tax when a residential property is left to them. If you have not reviewed your will since these changes came into force then you may risk missing out on some extra inheritance tax allowance.
There was speculation that in the April 2022 government budget, there would be further changes to Inheritance Tax Laws. Whilst it was anticipated that the taxable rate would increase, the Chancellor confirmed that there would be no change for the 2022-2023 tax year. Increases for the future however were not ruled out. While any potential rise is likely to be temporary, it is anticipated to last at least three years as part of a package of tax increases to pay off government debt accumulated during the pandemic.
Both the 2017 Inheritance Tax Laws and the April 2022 budget release are reminders of how vital it is to evaluate your will and estate planning frequently to ensure it is up to date with your current circumstances and the law. If your will is overdue for a review and update, or you have not yet prepared a will we can help.
We will provide you with a free introductory consultation to explore your will requirements. We’ll concentrate on your family’s needs, as well as your capital and income requirements, property ownership, and inheritance tax considerations. We will then work out a fee with you to create a bespoke will that expresses your wishes clearly. We can arrange a home visit if you prefer or visit you in the hospital at a time to suit you. A Saturday morning appointment can also be arranged to meet you and take instructions.
If you would like to create a will or update your current will, get in touch today by calling 01625 503 444 or filling out our simple enquiry form.
