Get ready for new residence nil rate band
Last year, the government announced an additional inheritance tax break for couples who own property that was once their main residence, even if they no longer live there.
This new legislation comes into effect on April 6 2017 and if you have invested in property during your lifetime, it may save your family money when they come to inherit your estate.
In my experience, few people are aware of this forthcoming change to the inheritance tax rules, which is why I would recommend anyone with property assets reads the following article. It is a comprehensive, user friendly guide to the new residence nil rate band, outlining the basic premise and eligibility criteria.
To ensure you make the best use of tax reliefs when you die, you may need any existing will reviewed by a probate expert. We can take a look at your estate and consider how it will be affected by the new rules.
Likewise, if you own property and haven’t made a will, what are you waiting for? You can only avoid undue upset and expense for loved ones by making your wishes clear and putting the necessary plans in place.
If you have any questions about the residence nil rate band, contact me at our Bakewell office on (01629) 812613 or email: suzanne.porter@tayloremmet.co.uk. To find out more, visit: www.gov.uk/government/publications/inheritance-tax
Trust your solicitor to make tax savings
I came across this really insightful article in The Telegraph the other day that shows how probate law can be altered to reflect modern society, including our attitudes to relationships.
It demonstrates that by consulting expert solicitors who understand the inheritance tax rules governing trusts, you can make huge savings.
The family featured in the report clearly have significant wealth and wanted to ensure it was distributed fairly, regardless of the next generation’s choice of partner. If they had simply accepted the standard trust provisions, however, their tax liability would have been significant.
Take a read for yourself to see how – with the right advice – family trust legislation can be updated to acknowledge marriage and civil partnerships. Essentially, the moral of the tale is keep reviewing your trusts and consult a solicitor regularly to see if anything can be done to mitigate tax.
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