Estate Planning and Wills in Sittingbourne

The threshold for Inheritance Tax (IHT) has risen in current years to £325,000 for individuals and – together with the solution now to transfer any unused threshold to a spouse or civil partner – a total of £650,000 for legally joined couples (for the tax year 2012/13) . The relative level of property prices, however, especially inside the South East, means IHT is still a concern for many home owners. It can be consequently sensible to take some time to take into consideration in advance the possible liability you may be leaving behind.

Prior to you appear to offset it, even so, it can be significant to establish what will accumulate as a prospective liability. For most, the essential contributor to their estate will likely be the worth of their dwelling and, even though this lies beneath the threshold, other elements can push an estate more than the limit. As an example, even though people commonly speak of the rewards of ISA investing – which shelters investors from capital gains and earnings tax – ISAs aren’t sheltered from IHT.

The issue with IHT just isn’t only the fact it must be paid, but also that it becomes due relatively swiftly – commonly within six months . When your house and specific other volatile assets are involved, there’s a provision that enables your beneficiaries to pay their liability via instalments whilst the property is sold. On the other hand, this means that, whilst waiting for that sale, other heirlooms might be compromised as, without having prudent preparing, some may possibly need to be sold to meet the bills.

Nevertheless, there is certainly action you’ll be able to take , specifically in case your liability is comparatively smaller. Few individuals realise that they have an annual exempted quantity that they could gift to someone. At £3,000 per year, this could go some strategy to reducing the all round estate. Gifts for weddings, from parents, grandparents and in some cases buddies, are also exempt (topic to varying maximum amounts) and you’ll find other beneficial tools for example loan trusts and discounted present schemes.

As the Government looks to close prospective tax loopholes it can be usually worth getting suggestions on what can and cannot be accomplished to ease possible IHT burdens. In the long run, it may assist your family members preserve a few of its most valued possessions, sentimental or otherwise.

Wills

It truly is understandable that a great number of of us place off the activity of creating a Will. It makes us think about our mortality and think about points which we hope will in no way occur. Having said that, without having 1, you may be shocked to discover how uncomplicated it is for your assets to be distributed in an undesirable way. The precise guidelines of distribution depend where within the British Isles you reside as some details differ among Scotland, Ireland and England & Wales. However, if you are not married, by way of example, the law is united in saying your companion could get nothing. Devoid of a marriage certificate, your children and parents will benefit instead.

Even though you are married, you will find quite a few good reasons for producing a Will. First and foremost, it enables you to take positive decisions over who gets what – including mates, friends’ children, charities and local societies who are entitled to nothing without your say. You’ll be able to also decide if ex-partners – or perhaps more importantly, ex-partner’s children – should be helped out. And, if your estate is greater than £325,000 (£650,000 for married couples), a Will can aid you plan to reduce your Inheritance Tax liabilities. In thinking like this, creating a Will can actually become a positive, rather than negative experience. Considering such things in advance can assist your peace of mind and ensure that all your family members and good friends will probably be looked after in exactly the way you want them to be.

To discuss your wills and estate planning requirements
give us a call today on 01621 876030.