Could you unexpectedly cross the Inheritance Tax threshold?

For some people, the Inheritance Tax (IHT) thresholds can seem a long way off. But when they pass away, their estate faces a significant tax bill that hadn’t been expected. It can be easier than you think to inadvertently cross IHT thresholds. When is IHT paid? Inheritance Tax is a tax on your estate after you’ve passed away, reducing how much you leave behind for loved ones. The standard rate of IHT is 40%. However, the majority of estates aren’t liable for IHT because they fall below thresholds. Nil-rate band: If ...

Young people to get inheritance windfalls

Young people to get inheritance windfallsThe amount younger people inherit is set to rise according to new research; but the trend is likely to reverse in years to come. The survey, by the Institute for Fiscal Studies (IFS), found that: The level of wealth in elderly households, where all members are 80 or over, has risen by 43% over the past 10 years 44% of elderly households intend to leave an inheritance of £150,000 or more, up from 24% 10 years ago 75% of people born in the 1970s expect to ...

Retirement: Are you putting your financial future in jeopardy by giving too much money away?

Are you putting your financial future in jeopardy by giving too much money away?There are many reasons why parents and grandparents may want to help out younger generations of their family. But new research has shown that in doing so, they are potentially putting their own standard of living at risk in retirement. The research, by Investec Wealth & Investment, surveyed 1,109 people during September and found that: 32% of parents and grandparents plan to, or are already, making gifts to their children The average amount gifted each year is £5,206 Of those people ...

Inheritance Tax: A quick guide to the recent changes

Understandably, much of the focus in the world of personal finance has been on the pension changes announced last year and implemented in April. However, there are also big changes on the horizon for Inheritance Tax (IHT) and with a recent survey from LV= showing that millions of people will rely on an inheritance to fund a comfortable retirement, we thought we’d take a look at what’s changed, whilst explaining some other IHT ‘basics’. What’s changed? The big change, announced by George Osborne in his recent Budget, is that IHT will be scrapped ...