Research conducted by Prudential and unbiased.co.uk shows that nearly 60% of UK adults have not written a Will, with one fifth of those questioned saying that it’s because they don’t think that they’re wealthy enough.
Many people choose to leave their property to their children as it’s the biggest asset they have access to, however, if a Will hasn’t been written with instructions on whom to leave it to it’ll end up in the hands of the Government’s intestacy rules.
A certain amount of a person’s estate escapes inheritance tax, which is currently set by the Government at £325,000 (this is after all debts such as your mortgage and expenses such as funeral costs are paid).
Spouses and civil partners can pass assets between themselves free of inheritance tax and their allowance can effectively be transferred to double the surviving partner’s allowance to £650,000. However, a 40% inheritance tax rate will be charged on anything over that allowance.
From 6th April 2017 each person will get an additional £100,000 tax-free allowance to use against the value of their home (rising to £175,000 by 2021). They can only get this additional allowance if they leave it to their children or grandchildren, but it can also be passed between spouses if not already used up.
It’s a misconception that only rich people pay inheritance tax as many people don’t realise that their combined assets could take them over the individual base rate of £325,000.
And even if you divide your assets to family and loved ones, if it’s within seven years of you passing then they’re still entitled to pay inheritance tax.
Financial planning can be a minefield if you try and understand it and implement it yourself, but with Ogilvy & Haart we take that stress off of your shoulders and explain ways in which we can help you for years to come.
As well as discussing inheritance tax we can also advise you on where to invest your money and how to protect it for the sake of your loved ones.
For a no-obligation consultation with one of our experienced wealth managers simply call us on 0333 444 0820 or email email@example.com