Inheritance Tax, Will Planning & The Family Home

Every individual has an IHT nil rate band, currently £263,000. If the value of your estate including your home exceeds this figure, then you are facing a potential IHT liability. The actual tax due could be 40% of the value of your estate that exceeds £263,000. As this liability would arise on your death, the tax due would have to be paid from your estate after your death.
Even if you have made a Will, it will often only ensure that your assets are left to your spouse, and then eventually be passed on to your children. Whilst this should give you the peace of mind that your loved ones will be provided for, it does not mean that your Will is tax efficient.

If you pass your entire estate to your spouse, there will be no IHT at that point, but you are in fact only storing up a bigger problem for the future.

So, what should you do?

The key lies in ensuring your Will is drafted so that both you and your spouse utilise your IHT nil rate band. By doing this alone, you could reduce your potential IHT liability by more than £100,000. As a result, your Wills should achieve the following:

Provide for your family

Protect your wealth for future generations

Minimise IHT liabilities

The dramatic rise in house prices in this area over recent years means that many of us are now facing potential inheritance tax ("IHT") liabilities.
If you pass your entire estate to your spouse, there will be no IHT at that point, but you are in fact only storing up a bigger problem for the future.

If you would like to discuss any of the above issues in more detail, please contact Les Styles at Styles & Co on 01925 761600, who will be pleased to assist you.