Why house price recovery means we shouldn’t forget estate planning. As the impact of the recovery in house prices dominates the news, another issue shouldn’t be overlooked: price rises mean more inheritance tax. It’s time to refocus on estate planning. Since the decision to freeze the inheritance tax threshold in 2009 (at £325,000 for individuals and £650,000 for couples), house prices have had a major influence over the amount of inheritance tax paid to the state. As recent official figures show, these payments rose significantly over the last tax year, partially at least thanks to slowly improving housing market conditions. With this revival gathering momentum in recent months and the inheritance tax threshold not due to be unfrozen until 2019, more people are facing inheritance tax bills. Add in the likelihood that personal savings will grow as well, and it is clear that estate planning should be a priority in people’s long-term financial planning. Whatever the circumstances and the timing, qualified estate planning advice can help mitigate inheritance tax liability: from the way a property is legally owned and making sure that both partners’ allowances are fully used to making use of trusts, downsizing property and giving away assets and cash. Of course, these plans to mitigate inheritance tax liability have to be used properly – in order to benefit the rules have to be followed strictly. For example, there are limits to the amount of cash that can be given away and a specific timeframe for doing it. Get it wrong and the mitigation is lost. This is where expert financial advice comes in. There are a range of exemptions and reliefs that can help lessen the burden of inheritance tax and, as house prices and personal savings start to grow again, they will become very useful to more and more people who want to protect their families and estates. To find out more about Independent Financial Solutions’ services, contact us on 0800 980 4316 or by using our enquiry form.
Posted on: Tue, 01 Oct 2013 07:55:48 +0000
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