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Article: End of Tax Year Planning: Affairs of estate.
- Article from:
- Money Marketing
- Article date:
- March 3, 2005
CopyrightCOPYRIGHT 2005 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Making use of annual IHT exemptions can help reduce a liability. Towry Law Financial Services financial consultant Matt Pitcher reviews the estate planning process
The Government received around #2.5bn in inheritance tax in the last tax year. The tax is charged on the value of an individual's assets at death but also applies to some lifetime gifts.
Although everyone is entitled to leave a certain amount without it being subject to IHT - the nil-rate band - this is currently only #263,000.
Amounts over this are subject to tax at 40 per cent and it is the role of the financial adviser to minimise the amount of tax that will eventually be ...