Inheritance tax changes set to impact UK families

The inheritance tax landscape is changing, and families need to be prepared. With property values rising and inheritance tax thresholds frozen until 2030, many estates are becoming liable for substantial tax bills. Donna Branagan, Director at Rotherham-based Branagans Accountancy Services, warns that inheritance tax is one of the most disliked taxes. “Inheritance Tax is one of the most disliked taxes, especially as many people’s estates will face a 40% tax charge for the first time after their death. With the IHT thresholds frozen until 2030, it’s crucial for individuals to plan to protect their estates from these burdensome taxes.” Her colleague, David Branagan, adds that even those with moderate estates can find themselves facing significant tax bills due to rising property values. “While some people believe IHT is only an issue for the wealthy, that’s no longer the case. With rising property values, even those with moderate estates can find themselves facing significant tax bills. It’s essential to act now, so your loved ones aren’t left with a hefty financial burden.” To reduce inheritance tax liability, families are urged to consider estate planning strategies.

Inheritance tax planning essentials

Giving away assets during your lifetime, provided it doesn’t affect your standard of living, is one key approach. Another effective strategy is to write assets into trust, removing them from the inheritance tax net and ensuring your family receives these assets more quickly without the burden of tax. Regularly updating your will is also vital. David Branagan advises, “Regularly updating your will is vital. Not only does it ensure your wishes are met, but it can also significantly reduce the IHT burden on your estate.” Writing life insurance policies into trust can also help your family receive funds quickly after your passing without facing inheritance tax. For expert guidance on navigating these complexities, Branagans Accountancy Services offers assistance. Donna Branagan concludes, “We are here to help. If you’re concerned about IHT or want to explore strategies to reduce your liability, don’t hesitate to contact us. We can guide you through the process and ensure your estate is protected for future generations.” Image Credits: Photo by Olga DeLawrence on Unsplash