Inheritance Tax Planning And The Advantages Of Employing Professional Advice

Inheritance tax is often an area of confusion for many people

, not knowing how much to pay, when to pay and even how to pay are just some of the concerns individuals often have. In short, if you inherit an estate which is in excess of 325,000 pounds in value then you may be liable for a 40 percent tax on the total value of the estate, anything below this amount is usually non taxable. This tax on any estate value greater than 325,000 pounds will also under normal circumstances have to be paid within six months of the deceased passing away and if this deadline is not met then interest charges may begin to apply.

With this in mind and due to the complexity usually associated with inheritance tax it is often advisable to talk to a financial planning professional, who will not only be able to guide you through the inheritance tax process, but who will also be able to identify areas where significant savings can be achieved. The most efficient way to do this is through the creation of a tax-efficient will, a service that any reputable financial advisory service will offer, and one which comes highly recommended from numerous financial sources.

There exist numerous and complex exemptions in inheritance tax law which can only really be taken advantage of through gaining professional advice and opinion, factors such as whether the estate is a gift, whether it is necessary for business use, whether it is associated with a charity amongst many other variables will affect the level of tax you will pay, but unless you spend a significant amount of time reading litigation or contact a specialists then you will not be able to take advantage of them. Professional advice will therefore allow you to hopefully reduce the tax bill for those who inherit your estate face and to allow them to make plans and arrangements to inherit your estate with regards to tax bills before the time comes that the inheritance becomes available.

After you have decided to seek the professional advice of a specialist firm you will then have to choose which type of company you wish to do business with. You have a number of options open to you; firstly you can opt to work with an independent company, who will look at your current circumstances and one who, being independent, will not be tied to any specific service or service provider. This will ensure that you get a completely impartial opinion and the opportunity to consider all options open to you and all products on the market. Another option is to contact a bank or other financial institution, but, this means that you might only be offered the financial services of the bank or building society you inquire with.

It is further important that any company you use for inheritance tax planning is well respected, as due to the fluidity of inheritance tax and in light of the changes which could be made to the laws surrounding the issue in current years the company you use must be one which keeps abreast of the latest developments. Above all, you need to locate a firm with a team of advisors who prioritise the specific needs of individuals and understands that not one plan will be suitable for every person. You need a company who is willing to implement a bespoke plan and one which is willing to understand the complexities of the situation you may find yourself in. Good independent, fee-based advisors often offer sound advice as they constantly change their strategies on inheritance tax and take advice from the worlds leading economists and financial lawyers as and when new legislation and information comes to light. High quality advisors will strive to incorporate new information and appropriate strategies into their tailored advice, to ensure that their inheritance tax planning advice is suitable to a clients individual circumstances.

If you currently reside in the south west and or the surrounding area and are considering utilising inheritance tax planning or independent financial planning London then you will find yourself at a substantial advantage as there is a wealth of advice on this subject to be found through utilising the numerous wealth management London firms currently serving the market.

by: Sarah Shore

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