PROMOTION Minimise inheritance tax By Elizabeth Russ, director and solicitor of the Commercial Law Practice in Dorchester nheritance tax (uis a charge on your assets on death. Lifetime gifts made in the allowance' was announced which gradually increases from £100,000 in 2017 to E175,000 per person by 2020/2021 which may allow people to avoid inheritance tax on property seven years before your death can also be brought back inso account for tax purposes IHTis also charged where an asset appears to have been given away but where, in fact, you Give your assets away and live for least 7 years then all gifts are free and avoid inheritance tax. Ifyou die within 7 years then inheritance tax will be paid on a reducing scale. There are a number of other allowances retain the use of that asset. When you die, the IIIT charge on your estate is at 0% on the nil rate band, at 40 % on the remaining balance The nil rate band is currently £325,000 that can be claimed However, the nil rate band available on your death can vary as it can be used up by lifetime gifts made in the seven years before Put assets into a trust; they will not form part of your estate on death and avoid inheritance tax your death. WAYS TO "MANAGE" IHT Take out life insurance for the potential inheritance tax bill and place the poliky in a trust to ensure it is paid outside of youur estate. Making a will is a major part of estate planning as you can make sure that assets are distributed in line with your wishes. Without Leave something to charity; such gifts will not be liable for IHT. If you leave at least 0% of your total assets to charity then the inheritance tax rate on the remaining assets awill your assets will be distributed accoeding to intestacy rules and may be liable to IHTthat coukd otherwise be avoided. willbereduced from 40 % to 36 % . Keep below IHT threshold: The nil rate IHT band is transferable to a spouse/civil partner Spend it! There is little point in being mean with yourself as you grow older for your family to be taxed at 40 % on some of your assets. Spend itt on death resulting in a total nil rate band of £650,000 for couples. In the 2015 Summer Budget a new 'main residence transferable THE COMMERCIAL LAW PRACTICE For more intormation on making an LPA please contact me, at The Commercial Law Practice on 01305 544015 or email er@thecommerciallawpractice.com PROMOTION Minimise inheritance tax By Elizabeth Russ, director and solicitor of the Commercial Law Practice in Dorchester nheritance tax (uis a charge on your assets on death. Lifetime gifts made in the allowance' was announced which gradually increases from £100,000 in 2017 to E175,000 per person by 2020/2021 which may allow people to avoid inheritance tax on property seven years before your death can also be brought back inso account for tax purposes IHTis also charged where an asset appears to have been given away but where, in fact, you Give your assets away and live for least 7 years then all gifts are free and avoid inheritance tax. Ifyou die within 7 years then inheritance tax will be paid on a reducing scale. There are a number of other allowances retain the use of that asset. When you die, the IIIT charge on your estate is at 0% on the nil rate band, at 40 % on the remaining balance The nil rate band is currently £325,000 that can be claimed However, the nil rate band available on your death can vary as it can be used up by lifetime gifts made in the seven years before Put assets into a trust; they will not form part of your estate on death and avoid inheritance tax your death. WAYS TO "MANAGE" IHT Take out life insurance for the potential inheritance tax bill and place the poliky in a trust to ensure it is paid outside of youur estate. Making a will is a major part of estate planning as you can make sure that assets are distributed in line with your wishes. Without Leave something to charity; such gifts will not be liable for IHT. If you leave at least 0% of your total assets to charity then the inheritance tax rate on the remaining assets awill your assets will be distributed accoeding to intestacy rules and may be liable to IHTthat coukd otherwise be avoided. willbereduced from 40 % to 36 % . Keep below IHT threshold: The nil rate IHT band is transferable to a spouse/civil partner Spend it! There is little point in being mean with yourself as you grow older for your family to be taxed at 40 % on some of your assets. Spend itt on death resulting in a total nil rate band of £650,000 for couples. In the 2015 Summer Budget a new 'main residence transferable THE COMMERCIAL LAW PRACTICE For more intormation on making an LPA please contact me, at The Commercial Law Practice on 01305 544015 or email er@thecommerciallawpractice.com