Inheritance Tax Planning Will Save More Than Halve Your Tax! By Shim Aquino At Isnare.com Ezine Articles

Plan ahead for your spouse, kids and next of kin by setting out clearly who and what they get from your estate. It also means that by inheritance tax planning you can maximize inheritance tax reliefs and exemptions if your estate might be worth more than the inheritance tax threshold when you die.

Do not underestimate the value of making a will and let your heirs know where to find it to ensure that your estate is shared out exactly as you want it to be. Without a will, your estate will be shared out among your next of kin according to the 'rules of intestacy'. Inheritance tax planning helps you to maximize what will be shared by your heirs from your estate after transfer fees and other assessments due to government are deducted.

Inheritance tax planning also involves having your estate valued by identifying all your assets less your liabilities; including your household bills and funeral expenses as well as gifts you may have given. Determine what the effective inheritance tax threshold is for the type of relationship you are in with your spouse or civil partner. For married couples and registered civil partners, you can effectively increase the threshold on your estate when anyone of you dies by transferring the deceased spouse or civil partner’s unused inheritance tax threshold or ‘nil rate band’ to the surviving spouse or civil partner. See, without inheritance tax planning, you may miss out on this incentive and the big discount you get.

Gifts you have given away are computed as part of your estate and valued accordingly. If you give your home away to your children and continue to live in it, your estate or your children might still have to pay inheritance tax on the property when you die, as well as other taxes. Gifts into a trust may still be subject to inheritance tax if your estate is over the inheritance tax threshold. However, by inheritance tax planning you will learn that you may give up to £3,000 away each year, either as a single gift or as several gifts adding up to that amount or you can make small gifts of up to £250 to as many individuals as you like tax-free.

Certain types of property can be passed on free from inheritance tax - or at a discounted value for inheritance tax purposes. This can be done while you’re still alive or through your will, yes, definitely, and more so if you do this with inheritance tax planning. You may be able to claim special relief on shares in a business partnership, land, buildings, machinery, farm land, working farmhouses and barns or woodland timber, even on National Heritage property - or famous and important works of art.

Inheritance tax planning can save you more than you are expecting. Let Porterbrown give you free legal advice about inheritance tax planning. It is the only way to secure your family’s future.

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