Inheritance tax is a tax on your worldwide assets. Proper planning could save your family hundreds of thousands of pounds. In order to plan effectively you need to put some time into collating the precise information required.
This will assist in the organisation of your assets and assist you to plan ahead and spend some time looking at all options available.
Here is my suggestion for the three steps you should take before you seek advice.
- Ensure you have copies of your latest will to hand. This is essential for IHT planning.
- List all assets (with up to date values) and clearly notate the ownership of each. So if there is a property, is it in single ownership, owned jointly or as tenants in common? List the asset values against the owner, so it can be seen readily who owns what. Don’t “forget” to include your overseas properties.
- Locate all insurance policies, there will be one page that lists all your personal details and the premiums, plus the amount of insurance cover. Take a photocopy of this page (for all policies).
It is often the case that an estate may be outside IHT tax limits – until the life insurance policies are taken into account (most people simply assume the benefits are tax free) that is not the case. I will cover this in more detail shortly in a blog.
Ray L Best