At DRA Legal we know that Wills and Trusts are continuing to be an important means of mitigating against the risk of having to pay Inheritance Tax. Inheritance Tax is a tax paid by a person who inherits money or a property of a person who has died, Inheritance Tax is currently charged at a rate of 40% of all assets above a single person’s current limit of £325,000. It is important to know that Inheritance Tax is a tax on your estate which in addiction includes everything you own; it can also be payable on gifts you have made during your lifetime. Inheritance Tax is also payable on assets you own solely and on a share of anything you own jointly with, for example your spouse.

 

It may be possible to help reduce the Tax payable or avoid Inheritance Tax altogether by taking advice during your lifetime. There are many different things that might count towards your estate, some of which are:

-Property (bricks, land)

-Insurances

-Investments (gifts, shares, and bonds)

-Gifts received from someone else’s estate

-Payment from a pension plan or employee death benefit (unless the benefit of the policy has been placed in a trust)

-other assets (cars, jewellery, and furniture)

-Certain gifts you have made in the last seven years

 

The process of Estate Planning involves having to carry out a full analysis of the client’s objectives and their current assets, working out the means and measures necessary to provide for the future needs of the client and of family members.

 

Need more information on our Estate Planning services? Contact our amazing team at DRA Legal and we will answer any question you have! Call us for a free consultation at 01924 601043 or by email at info@dralc.co.uk.