It’s generally not a good idea to put your home into a trust during your lifetime. Some advisors suggest transferring a share of the home to a trust to increase tax allowances. However, if the amount exceeds certain limits, this can lead to immediate inheritance tax charges. All intentionally set-up trusts need to be registered
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Thinking about what happens after we’re gone isn’t fun, but it’s essential, especially for taking care of the people we love. That’s what making a Will is all about. It’s more than just a legal step; it’s how you ensure your stuff – like your house, savings, or other belongings – goes to the people
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For many people, ensuring that their loved ones are taken care of after their passing is a top priority. The Main Residence Nil Rate Band exempts those with assets below £1,000,000 from Inheritance Tax (IHT). However, some may find that their home attracts an IHT liability on death. If this applies to you, navigating the
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Inheritance Tax (IHT) is a topic that often sparks discussions about whether it should be abolished. According to a recent YouGov survey, many find it the least favourable tax. It revealed that 50% of respondents consider it ‘unfair’ or ‘very unfair’, while only 19% held the opposite view. Interestingly, there is a common misconception that
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In the 2022/23 tax year, inheritance tax receipts reached an all-time high. The trend seems to continue this year too. The government releases monthly data on tax receipts. In April, it showed that HMRC raised £7.1 billion through inheritance tax in 2022/23. Between 2013/14 and 2022/23, this represented a 108.3% increase in inheritance tax, which
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Do you worry about how to pass on your wealth to your loved ones without having to pay a lot of taxes? If so, pensions can be a good way to tax-efficiently leave wealth to your family. Inheritance Tax (IHT) is a tax that affects around 1 in 20 estates, and more people will need
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The deadline for registering trusts on the new Trust Registration Service (TRS) of 1st September 2022 is fast approaching. As a reminder, the new rules, introduced on 6th October 2020, extended the scope of the TRS to UK (and some non-UK) trusts. Previously, only Trusts that had to pay tax had to register; the requirement
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The Institute for Fiscal Studies (IFS) has published a new report on likely future inheritances. It may give a future Chancellor something to consider The Institute for Fiscal Studies (IFS) has regularly looked at inheritance and inequality. In its latest paper, it has gone into greater detail, drawing on data from a variety of sources:
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If a trust might generate taxable income or gains, HMRC required the trustees to register it with them. They did this using paper Form 41G (Trust). This was not the case where the trust would not generate any taxable income or gains. An example of this is where a trust holds an investment bond. What
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We all want the best for our grandchildren. We would also like to reduce the inheritance tax (IHT) our loved ones could pay when we die. For many, giving their children or grandchildren the best opportunities means private schooling. More than half a million children currently going to private schools in the UK. According to
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IHT receipts for April to October 2020 were £33 million higher than for the same period last year. October 2020’s receipts were also up 17% compared to October 2019. This could be due to the Covid-19 pandemic. What it does show is that many families who have not done any planning may have paid tax
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Thinking about your death is an uncomfortable topic. Combining this with money makes this even worse. There are three places your assets can go at your death. They can go to your family and friends, charities and other institutions, or the government in the form of taxes. Almost half of all Baby Boomers say they
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A Whole of Life Assurance policy with guaranteed premiums promises payment of a known level of cover upon death of the life / lives assured whenever death occurs, provided that premiums are maintained. The premium and sum assured are fixed throughout the life of the policy (in some cases it is possible to include an
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Although often in the news, Inheritance Tax (IHT) is easy to misunderstand. If you thought IHT was for wealthy people to worry about, think again. Rising property prices have meant more estates than ever are likely to face an IHT bill. The amount of IHT collected has doubled over the last decade. If your estate
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Perhaps you have been asked to be a trustee or you are considering setting up a trust yourself. In either case, there are a few things you should know before deciding. Being a trustee requires a certain level of involvement. This blog post should hopefully give an insight into what is involved. What does a
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Many of us go to great lengths to protect what we have while we are here. We put in alarm systems, smart doorbells, thick locks. However, most of us do not do anything about protecting what we have when we are gone. A new survey by the British Heart Foundation found 61% of people do
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