The value of Estate Planning in Essex is effectively illustrated by the fact that it can give you peace of mind. With this in mind, there is a clear need to make sure that you have made plans for after you are gone so as to then give you peace of mind. Of course, there can be no denying that it is not nice to think about, but it means that it is possible for your loved ones to be able to carry out your wishes and be protected from Inheritance Tax.
At the same time, however, you need to recognise that you do not have to be wealthy for your estate to be liable for Inheritance Tax and it is also something that is not only paid at the time of someone’s passing. This is because it has long been recognised that Inheritance Tax may also have to be paid on gifts made during someone’s lifetime subject to certain requirements and exemptions established in this regard. Nevertheless, your estate will be liable for Inheritance Tax in the event that it is valued over the current Inheritance Tax threshold (or Nil-Rate Band) at the time of your passing which is fixed until 2020/21 at £325,000.
Your estate includes any gifts you may have made within seven years of your death. Anything under the Inheritance Tax threshold is not taxed (the Nil Rate Band), and everything above it is taxed, currently at 40%. Then, in the event that a person dies and leaves at least 10% of their net estate to a qualifying charity, a reduced rate of 36% Inheritance Tax can be payable. However, it is also to be noted that any unused proportion of the Nil-Rate Band belonging to the first spouse or registered civil partner to die can be passed to the surviving spouse or registered civil partner.
For more information about the value of estate planning in Essex as a means of protecting both yours and your family’s best interests so as to then give you peace of mind, contact our dedicated Essex-based staff at Andrew Douglas Wills and Legal Services now via www.andrewdouglaswills.co.uk or on:
01376 348 997
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