The Basics

1. Inheritance tax (IHT) is a tax charge based on the value of a person’s estate at the time of death. This can include the home, properties, shares and bank balances for example.
2. Certain transfers made out of a person’s estate during a person’s lifetime are also subject to IHT at the time the transfer is made. For example, if you gift any personal property into a discretionary trust.
3. Certain transfers of property can become chargeable to IHT if made within 7 years of death. These are called Potentially Exempt Transfers. For example, if you gift a sum of money or a property to a son or daughter.
4. There are a wide range of exemptions which valtrex apply both on death and to lifetime transfers, such as Business Property Relief and Annual Exemptions.
5. Assets held abroad by non-UK domiciled individuals are excluded property and as such are not subject to IHT.

Spouses and wills

1. Transfers between spouses or civil partners (the term “spouse” effectively means the same as “civil partner” now) are exempt from IHT on the proviso that both partners are UK domiciled.
2. If the transferee is non-UK domiciled only the first £55,000 is exempt.
3. Any nil rate band is transferable between spouses on the death of the first (subject to domicile).

Do you and your spouse have up to date wills?

1. Are your wills regularly updated?
2. Have your wills been updated since the rules changed to permit the transfer of unused spouse nil rate bands?
3. Your old will may provide and refer to nil rate discretionary trusts as these were very common in wills that were prepared just a few short years ago. Given the rule changes these may not be suitable now.

Action

Contact us to discuss your current will to ensure that it is suitable for your current circumstances.