DONT Let IHT ruin your surviving family money, no inheritance tax plan?
We recently read an interesting article on “Inheritance Tax” by Justin Naughton of Zurich “Advice Matters”
He writes” One of my favourite quotes is from MP Roy Jenkins, who in 1986 uttered: ‘Inheritance tax is, broadly speaking, a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue.’ Another is from my seven-year-old daughter who, when explaining IHT to her, asked (believe it or not): ‘Why worry about it? You’re dead!’ Why worry? The Inland Revenue has a significant income stream in the shape of the so-called ‘death tax’: it’s on course to bring in more than £5.4 billion in 2020/21 (receipts were £5.2 billion in 2017/18). With the nil rate band remaining static since 2009/10, and the residence nil rate band still tapering (as well as it only being possible to pass to direct descendants), IHT continues to be an extremely important area for you to review with your clients.
DEADLINE With no IHT plan in place, there can be painful consequences for clients’ heirs. The recent volatility in stock and property markets, plus the ongoing uncertainty over Brexit, means their bill can sometimes exceed 40%. This is because any IHT bill needs to be settled within six months of death, and generally the first port of call will be investments. Should the volatility in the housing and investment markets continue, they may have to sell these assets at a value lower than they would want. If you consider your top clients, what would this mean to your business? How would this affect your clients’ estates? ”
Read their online article here Zurich IHT
Talk to us at Buxton Beresford Contact Us
