Recent changes to inheritance tax allowances leave us questioning if inheritance tax could be a thing of the past.
Over the next four years the government is phasing in measures to attempt to reduce the burden of inheritance tax for most families. This will make it easier to pass on the family home to direct descendants without a tax charge.
Residence Nil-Rate Band
The measures, known as the ‘residence nil-rate band’, took effect in April 2017 and will increase each year until April 2021. These are the most significant changes to inheritance tax laws in years. Now is an important time to consider how best to pass on your assets and how to structure your Will so that you can benefit from the new rules.
Are trusts still the most efficient practice?
If you have any form of trust within your Will you could potentially lose out on this entitlement. This could result in an unnecessary tax liability for your beneficiaries. It may be the case that the trust remains the most suitable and tax-efficient way to protect your beneficiaries but without reviewing these new rules with an expert it may be hard to tell.
To ensure that your Will still operates in the way you want it to, we recommend that you review your current arrangements. Make an appointment to speak to our Wills specialist and Head of Private Client, Matthew Porter, on 01420 82881 or via firstname.lastname@example.org.