Ipswich Financial Adviser

Inheritance tax is levied on your estate when you die. The first £325,000 (£650,000 for couples) is tax-free but if the value of your assets is more than that, tax will be levied at 40 per cent.

This may sound a large sum of money, but it includes all your assets, including property, cars, valuables, bank accounts and investments to name a few. With the increase in property values over time, more people get caught over the inheritance tax limits and end up paying 40% on the excess.

The best thing to do is to work out if your estate is worth more than the set limits. If your estate is worth more, then you need to get professional independent financial advice to find out ways of reducing the inheritance tax liability. On many occasions there are simple ways to do this and that can save the beneficiaries of your estate many thousands of pounds in unnecessary tax.

It is also best to look at inheritance tax planning as early as possible, because if you leave it to you are much older, you do not have as many opportunities to reduce this tax liability. My advice is to get advice early and start planning so that you can mitigate some or all of the potential tax overtime, making it easier for you to achieve you financial goals.

Please feel free to contact Thompson Financial Consulting and we will be happy to help with your inheritance tax advice needs.