"Medical + Dental Financial Planning Services have advised us for several years and we are delighted with their expertise and guidance. David Henderson and his team have offered invaluable, intelligent and astute recommendations of our investments, particularly in the difficult world of retirement, and we anticipate that this personal relationship continues in a long and fruitful association over the coming years."
- Independent Advice
- NHS & State Pensions
- Retirement Planning
- Estate & Tax
- Risk & Protection
Inheritance Tax is a tax on your estate – the total value of your property, money and possessions – which becomes payable if, when you die, your estate’s total value is more than the Inheritance Tax threshold currently in force.
The current threshold at which the estate must pay 40% tax is £325,000 for a single person, or for people who are married, in a civil partnership or widowed, the threshold is currently £650,000 between them.
Normally there is no Inheritance Tax to pay if you leave everything to your spouse or civil partner, (or a charity, or a community amateur sports club).
If you give your home away to your children (including adopted, foster or stepchildren), or grandchildren, your threshold is increased to £450,000.
But in the worst case situation, if you’re single and your estate is worth, say, £425,000, then tax will be liable on £100,000, which gives rise to a tax bill of £40,000. This is paid before the balance of your estate is dealt with under the terms of your will, so that’s £40,000 less going to your preferred beneficiaries. The rules involved in inheritance tax are complex and it is for this reason alone it is important to discuss your situation with us, as only then will you be able to understand its potential effects on you, whether your loved ones will lose out on some of their inheritance and, more importantly, what can be done through us to reduce or even eliminate its effects. Note that if you are a partner in a professional practice, then the sum paid to your nominated beneficiary under any Shareholder/Partnership Protection policy is paid directly from your business insurer to the named beneficiary, and not counted as part of your estate.
The below calculator can help give you an estimate of your inheritance tax (IHT) liability.
INHERITANCE TAX PLANNING, WILL WRITING, TRUSTS AND TAXATION ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.