So much so that 60% of 45-54-year-olds aren’t fully au fait with how it all works – according to Barclays Wealth*.
But don’t let this put you off.
Because when it comes to passing on wealth to your family, knowing the ins-and-outs of inheritance tax now could prove highly worthwhile later on.
And really help your family in the future.
So, what exactly is inheritance tax?
Inheritance tax applies if, when you pass away, the value of your estate is worth more than the inheritance tax nil rate band.
If it is, up to 40% on anything above the nil rate band may have to be paid in inheritance tax (from your estate). This could cause your loved ones to lose out – and receive a smaller inheritance.
You might be wondering if you even have an inheritance tax liability.
After all, it’s only the very rich who have to pay it, isn’t it? Well no – it isn’t. Not anymore.
Thanks to things like the rise in house prices, more and more families are becoming affected by inheritance tax – with billions of pounds in revenue collected year-on-year.
Clearly, this is a lot of money. Money that might be kept in the family if plans had been put in place to deal with a potential IHT liability.
Worryingly, a lot of the mix-up lies around the type of assets that are subject inheritance tax.
But the truth is – pretty much everything you own is included in your estate.
Your home, savings and investments, car – even your jewellery and household furnishings (minus any liabilities).
And when you think about the current surge in property prices, the value of your house alone might take you over the inheritance tax threshold. (For a single person, the main nil rate band is £325,000 and for a married couple it’s £650,000. There’s also the residence nil rate band allowance, which can be used to pass on a home to a direct descendent.)
Find out more how you could benefit from inheritance tax planning with Skipton
Call Skipton today for a no-obligation chat on 0345 266 0979 or request a call back or find out more more information
Ok – let’s move onto the positives.
This article is here to help you. So, don’t worry if you think you might have an inheritance tax liability.
The good news is that there are some things you could be doing now – to help tackle your potential problem as much as possible. In fact, the sooner you address inheritance tax, the bigger the difference it could make to your family’s future.
And we don’t expect you to do this alone either.
With so many rules to think about, we know how complicated inheritance tax can be. And some things in life really aren’t worth second guessing.
That’s why it makes good sense to speak to someone in the know.
At Radio Times, we want to help you make stronger plans when it comes to passing on your wealth..
We know that help from an expert could go a really long way – which is why we’d like to introduce you to our trusted partner, Skipton Building Society.
With over 30 years of experience behind them in offering financial planning, Skipton are here to help you plan your legacy.
Ben Smith, Technical Planning Leader at Skipton, explains, “Now more people are preparing for the future, getting to grips with inheritance tax could prove hugely important for you and your family.
“We know it isn’t the easiest topic to talk about. But over the years, we’ve seen the positive impact careful inheritance tax planning could have on families. By taking advantage of our expertise, you could avoid any confusion, make sure nothing is overlooked – and put plans in place that are right for you.”
A face-to-face review with Skipton can take place at home (through a simple video appointment), or local branch.
And you’ll be pleased to know that you’re under no obligation whatsoever to take Skipton’s advice. It’s free to hear their recommendations – and a charge will only apply if you decide to proceed.
Some IHT planning solutions put your capital at risk, so you may get back less than you invested. IHT thresholds depend on your individual circumstances and prevailing legislation, both may change in future. The Financial Conduct Authority (FCA) do not regulate most forms of IHT planning.
To find out if Skipton could help you, and if you may have an inheritance tax liability, call Skipton today for a free and quick initial consultation.
Call Skipton today for a no-obligation chat on 0345 266 0979 or click for more information
Radio Times financial advice service is provided by Skipton Building Society. Skipton is a member of the Building Societies Association, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 153706 to accept deposits, advise on and arrange mortgages and provide Restricted financial advice. Principal office: The Bailey, Skipton, North Yorkshire BD23 1DN. If you take advice from Skipton Building Society, Radio Times will receive a fee for the introduction.