Many people want to avoid leaving their family with a large inheritance tax bill when they die.
More people are becoming liable for this payment, so it is important to undertake estate planning with the help of solicitors in Porthmadog as soon as possible if this could affect you.
Although the thresholds for paying inheritance tax could change, it is still vital to anticipate the ways in which the bill can be reduced. There is a set amount which may be left to spouses, for example, without being subjected to inheritance tax and since this can be a relatively large amount, many people become exempt from the tax.
One way of avoiding the tax is to support relatives with their day-to-day living expenses. This is considered to be part of the gifting exemption, but it must be proven that monies used for this are supplementary and are not being channelled into this instead of paying essential bills. When someone dies, the recipients need to prove that the money used was spare cash, so bank statements may be examined.
Putting money into a life insurance policy is another way of reducing inheritance tax liabilities. Cash paid out upon the death of the policy holder will be paid to loved ones without being taxed, but it is essential that proper legal advice from solicitors in North Wales is used to set this up properly.
Talk to us here at Bennett Smith Solicitors today and book a meeting with one of our legal experts to start planning your estate and Will.