Changes To Inheritance Tax – Inheritance tax basics
When a person dies, inheritance tax is payable if that person’s estate, consisting of money, property and possessions, is deemed to be valued at more than the nil-rate band.
Since 2009 the nil-rate band has been set at £325 000, with anything above this being taxed at a rate of 40%.
If, when you died, your estate was worth £500,000, the first £325,000 would be free from inheritance tax, but the remaining £175 000 would be liable for IHT tax at 40%.
IHT can be reduced slightly to 36% on some of the assets, if the owner has left 10% or more to charity.
Any unused allowance could be transferred to a spouse or civil partner thus increasing the nil-rate band to £650,000 if the deceased did not use any of their own allowances (although this is very rare).
Read more in this article about ways to reduce your IHT liability.
When it comes to planning your marriage, managing your money may be the last thing on your list. However, in this blog we look at the financial planning you will need to do as a new partnership together and why advice from a financial planning consultant is a good move.
Why See a Financial Planning Consultant?
Congratulations, we hope this will be the start of an amazing life journey for you both.
Many people will tell you that the first step you need to do now, would be to draw up a list of things you need. The list for some couples can be endless and depends upon your finances and family situation.
However, the one thing that is missing from all of these lists is the Warrington Financial Planning consultant you should speak to before you even start thinking about the wedding. If you have agreed to spend the rest of your life with “the one”, then make sure your finances are planned now.