'In this world, nothing is certain but death and taxes.' Benjamin Franklin
Inheritance Tax is a very controversial issue in the UK; a deeply unpopular and many feel, unfair tax, levied at a highly sensitive time in people's lives, and whilst Franklin made this statement at least partly in jest, he does help to make a serious point in respect of Inheritance Tax planning.
Namely, if you have a large estate, in excess of the prevailing nil-rate Inheritance Tax band, you can be certain that unless you take action, Her Majesty's Revenue and Customs will become one of the beneficiaries of your estate, no matter how intensely you dislike the idea and this is why proper Inheritance Tax planning is crucial.
Many people do not realise their estate may have a liability to Inheritance Tax, because it is still widely perceived to be a tax paid only by the very wealthy. However, with the surge in personal wealth in recent years, precipitated largely by soaring house prices, huge numbers of people must now consider the tax implications of their estate.
Furthermore, such people must also appreciate just how punitive the tax can be; 40% on all assets above the prevailing single or combined nil-rate band, which, put simply, means that an individual with an estate of £500,000, who dies in the 2008/9 tax year, could leave behind a tax liability on death, of £75,200.
Like the majority of people, we would not like to think of our families receiving a reduced bequest or facing a large tax bill upon our deaths', as a result of the Inheritance Tax laws. Therefore, we understand our clients' feelings and concerns on this issue and are committed to helping them mitigate their family's potential liability.
At our initial consultation, we will ascertain the nature of your estate and the extent to which there may be a tax liability. After talking matters through with you, we will consider how best to utilise the options open to you and what actions may be required, before proceeding to conduct appropriate research.
This may include liaising with a solicitor practice with whom we work closely, since we feel a successful Inheritance Tax mitigation strategy should involve professional legal, as well as financial, perspective and expertise.
Once we have formulated a strategy for mitigating any liability, we will arrange a convenient time to meet you again - we are happy for this meeting to include family members, if you wish - to talk through the work we have done, issues we considered and the reasons for our conclusions.
Only if you are completely satisfied with our recommendations, will we then proceed to implement them.