A Shock None Of Us Want To Have!

If you’re a fan of Eastenders, then you would have no doubt seen the shock on Sonia Fowler’s face when she recently found out that she was expected to pay £196,000 in Inheritance Tax, having been left a house by the recently deceased Dot Cotton – who had been married to Sonia’s Grandad.  There was a lot of debate in the media in the days that followed, about how this humble terraced property, in a not very glamorous (make-believe) part of London, could be worth enough to lead to this bill – and herein lies an unfortunately common situation.

As a result of an epidemic of “blissful ignorance” we see so much money going to the taxman unnecessarily.  Most people don’t worry too much about Inheritance Tax because they think it only applies to ‘rich’ people.  But these days, anyone owning their own home may well be ‘rich’ enough for their assets to be liable for tax when they die.  If these matters aren’t addressed early on then it may well be too late, and you could have worked hard all your life just to hand everything over to the tax man when you die.

The Inheritance Tax allowance currently stands at £325,000 – with an additional allowance of £175,000 if you are leaving a property in your Estate to direct descendants.  Tax is paid at a rate of 40% on anything in an estate over and above that amount unless passing to your spouse or to charity, but with proper planning this can be greatly reduced or even eliminated altogether. You could save your loved ones a considerable amount of money by the use of flexible wills, properly advised lifetime gifts and trusts, and by taking advantage of Inheritance Tax reliefs and exemptions.

As specialist Solicitors, at Anvoner Law we recognise that every person has a different set of circumstances and different priorities and wishes.  We can explain to you in plain English how Inheritance Tax works and how it can often be avoided or minimised by taking the right steps.  We’ll go through suggestions which are relevant to your situation, showing how tax planning  can work, and what possible disadvantages have to be weighed against potential benefits.

Luckily for Sonia, she was given a reprieve when it became apparent that she still had her Grandad’s Inheritance Tax allowance to use, but not everyone will be that fortunate.  So don’t take a chance – get in touch with us for expert advice or download our brochure for further information. https://anvoner.co.uk/inheritance-tax-protection-of-assets/