July 11, 2014 / 0
Your children may be grown up and financially secure. If your assets pass to them, you will be adding to their estate and to the IHT which will be charged on their deaths. Instead, you might consider leaving something to your grandchildren, or reducing your taxable estate by helping them out during their education.
Single people might not have given much thought to estate planning. But you should make a will to set out your preferred funeral arrangements, how you want your estate to devolve on your death and who will have responsibility for it.
Your net estate might pass to your parents or your siblings under intestacy rules but would you prefer to leave your wealth to your nieces or nephews?
Most transfers of property between spouses or civil partners are exempt from IHT. This means that when one partner dies leaving some or all of their property to their spouse/civil partner they may not make full use of their own £325,000 nil-rate band. In these circumstances, it is possible to transfer unused nil-rate band allowances between spouses or civil partners.
Another way to build up capital outside your own estate and save IHT is to make regular gifts out of income, perhaps by way of premiums into an insurance policy written in trust for your heirs. Regular payments of this type are exempt from IHT.