Wills & Probate

Estate and Inheritance Tax Planning

With the recent rapid rise in house values, more and more people are finding that inheritance tax will be payable on their estates when they die. If a person leaves more than £325,000* on their death, then their heirs must pay tax on the excess at 40%*. This tax must be paid ‘up front’ before the estate is distributed. Clearly this would leave a large hole in any inheritance.

The Chancellor announced in the Pre Budget report October 2007 that married couples can double their tax allowance on the death of the second spouse, effectively allowing them to leave up to £650,000 free of tax on the second death.

Couples should take advice on the implications of these tax changes in relation to their individual circumstances.

The announcement does not assist clients who are not married for whom the tax allowance will remain at £325,000.

Rowlinsons specialist advisers can help you to plan ahead and advise you on the practical steps you should take to reduce or even eliminate your inheritance tax liability, so you can ensure that your family do not lose out.

* based on 2009 - 2010 tax figures. This figure should rise to £350,000 by 2010.