Tax and Estate Planning Top Tips

Tax and estate planning top tips

Use your annual exemption of £3,000 per annum. Even if you die within 7 years, the gifts do not form part of your estate. You can also make unlimited gifts of £250.
If you do not spend all your income, you can make gifts of your excess income. This is in addition to your £3,000 annual exemption and £250 gift allowance.
For Inheritance Tax purposes, equalise your estates so that you own your combined estate in equal shares.
Make sure you hold joint property as “tenants in common” rather than “joint tenants”. This is beneficial for
Inheritance Tax and care fees planning
If you hold property in your sole name, consider transferring the property into joint names as “tenants in common”.
If your spouse or partner is a lower rate income tax payer, make sure you use their personal allowance.
If you are selling assets, consider transferring them prior to sale to utilise both Capital Gains Tax annual exemptions.
Make sure any death-in-service-benefit, life insurance or pension death benefits are written into trust (see Wright Hassall Tax Buster Trust).
If you receive an inheritance or legacy, consider redirecting it through an Inheritance Saver Plan. This allows you full access to the funds but can effectively be held Inheritance Tax free.

For more information on tax and estate planning please contact Charles McKenzie or John Rouse