Don't bequeath your wealth to HMRC

  • 18th February 2020

Have you carried out estate planning in the past, or thinking about passing wealth onto future generations?

For those who are fans of budgets - all two of you! - your wait for the 2019/20 instalment will shortly be over as it is scheduled for March 11, having been delayed because of December’s General Election.

The Personal Allowance, National Insurance, care funding and the environment are likely to feature strongly, and there have been some strong hints already as to how the first two in particular will fare.

Inheritance Tax (IHT) is going to be harder to call. Some commentators believe that this tax will be abolished, or at the very least simplified, but for some their faith in any government lowering IHT is low. At 40% on anything over £325,000 for each individual, it is expected to help HMRC rake in £5.9 billion this tax year.

Whatever the outcome of the budget, it will almost certainly have an impact on anyone who is thinking about estate planning, as well as those who have already started the process, no matter how long ago that was.

The positive news is that IHT has always been deemed a 'voluntary' tax. Rules may change, tax rates may fluctuate, but there have always been a number of ways of ensuring parts of your estate aren’t bequeathed to HMRC once you have passed away.

As we stand today there are at least six key ways of minimising - or eliminating - the impact of IHT. These range from relatively quick and simple methods through to complex trust and gift planning where advice is likely to be extremely valuable.

And if you have already carried out some planning, when did you last review it? Estate planning is certainly not a case of fire-and-forgot so it will need to be reviewed regularly to ensure it remains appropriate for you and your family.

If you have carried out estate planning in the past, are thinking about passing wealth on to future generations or just want to know more, contact us on 0333 11 222 11 or email info@fbwealth.co.uk.

For more detailed information on Estate Preservation, you can also read our guide.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.

Tax treatment is based on individual circumstances and may be subject to change in the future.

All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.