Inheritance Tax

Inheritance TaxEstate Planning - why do it?

Few of us like to think about dying; however the relevant legislation requires us to plan well in advance. The earlier arrangements are made, the greater the chance of taking full advantage of our complicated tax system and make sure you maximise the benefit for those that you leave behind.  You should have a Will and it should be reviewed regularly.

Inheritance Tax Advice
It is important when planning to transfer an estate that adequate provision is made and getting the right balance requires considerable skill and foresight – along with a detailed knowledge of the current tax regime.

However, you may also need to consider the implications of Local Authority Care costs and how to protect your assets. If your estate exceeds £325,000, then you may be charged up to 40% tax based on the estate value. However, if you need care and your capital is in excess of £23,250, the Local Authority could take 100% of your capital in excess of this level. This could mean that Inheritance tax planning is less relevant. But this is not the case.

By contacting Hill Lillis and Company, we can provide you with a discreet comprehensive estate planning service that includes:

  • Help with planning and reviewing a Will to ensuring the Will is tax efficient
  • Making full use of exemptions and lower tax rates on lifetime gifts
  • Planning and advising on lifetime transfers between family members
  • Planning in respect of the family home
  • Ensuring that you are aware of any potential pitfalls e.g. Gift with Reservation of benefits
  • Examination of private limited company share structures to ascertain the advantages of any share reorganisation
  • Transferring agricultural or business property
  • The use of trusts where appropriate
Wills and Trusts
The vast majority of people will delay making or revising a Will for various personal reasons. However, this can create many problems for those that are left behind. By making a Will, you are able to determine exactly who you would like to benefit and what you would like to happen to your estate and personal assets.

You may not be aware but without a valid Will in place:

  • Your spouse or civil partner will not automatically inherit ALL of your estate
  • Common Law partners may not receive anything
  • Minor children could be taken into care while Guardians are appointed
  • There could be lengthy delays for your beneficiaries and disputes between relatives

For these and many more reasons, Hill Lillis and Company are here to advice and reassure you on your Wills and Inheritance tax position.

Business Succession
If you are a business owner, the succession of your business is a very important issue that you should plan carefully. For instance, do you know who would actually be entitled to your share of the business upon your death? Would your business partner(s) want to run your company with your surviving spouse or beneficiaries?

If not, would your business partners be in a financial position to be able to buy out your interest in the business?

To ensure your succession goes through smoothly in what could be a very difficult time for your close family and colleagues, you should put your plans clearly in place, and we are here to help.

In more complex circumstances, such as above, it may be appropriate to use planning strategies such Trusts or Shareholder Protection schemes. Trusts are a relatively easy and very tax efficient way to set aside assets for future beneficiaries outside the inheritance tax net, as well as protecting your assets from the costs of long term care.

Some of the circumstances you may wish to consider using a trust to provide asset protection are:

  • Divorce or separation settlements of future generations
  • Future family circumstances such as remarriage
  • Creditors or bankruptcy claims
  • Further Inheritance Tax bills

There are three basic types of trust in regular use:

  • Bare trusts (or simple trusts)
  • Life interest trusts (often referred to as ‘interest in possession’ trusts)
  • Discretionary trusts

We can advise on the most suitable type of trust to fulfil your wishes, as the choice of trust depends upon individual requirements, we can also assist in setting up the trust and provide the full range of accounting services required for trust management.

Inheritance Tax, Estate Planning and Trust Management are complicated areas, best handled by professional advisors, such as Hill Lillis and Company, so why not contact us today for advice and support in putting your plans in place.

Keep in touch

For more information on the above, please Contact Us or telephone on 0121 384 4222 and we will be glad to answer any questions you may have. Even better, why not book your FREE consultation today, it only takes a minute. At this stage, if you are just looking for an idea of how much our services cost, then please feel free to complete our Request a Quote Form and we will get back to you within 48 hours.

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