Benjamin Franklin famously said: “There are only two things certain in life – death and taxes.”
It stands to reason, then, that most people will eventually need Inheritance Tax planning, care planning or both.
The elderly are far more likely to need these services although Inheritance Tax (IHT) and care planning are usually far more beneficial to children than to parents. After all, the main aim of Inheritance Tax planning is to ensure that children inherit much more of the wealth their parents spent a lifetime accumulating, rather than see it all swallowed up by IHT and care home fees.
The planned regular increases in the nil rate band for each individual in future years have been stopped by the Government, so the band will remain at £325,000 (or £650,000 per couple, if used properly) for the foreseeable future. If taxable estates exceed this amount, the balance will be taxable at 40%. In these cases it would be worthwhile to implement planning to mitigate the exposure to Inheritance Tax.
Inheritance Tax Health Check
Smailes Goldie can perform an Inheritance Tax health check for you and/or your parents, who may or may not have their own advisors. On completing the health check and attaining a thorough understanding of your wishes and requirements, we can implement ad hoc structures and plans, including the use of trusts.
Trust funds can be an effective way to take assets out of estates, to hold standalone and/or to pass assets down the generations when beneficiaries come of age. They may also be an effective way to avoid future family feuds and to ensure assets reach their intended destination.
Smailes Goldie’s team of tax specialists can implement tax planning and asset protection through the medium of trusts. We are also able to deal with all areas of routine accounting and tax compliance, as well as the day-to-day administration.
If you would like to discuss this possibility further, please feel free to give us a call.