Should You be thinking about protecting your assets or those of your parents?
Do you have ageing parents? If so, have they taken any action to preserve their assets? It is well worth finding out, as this could prevent their estate being significantly reduced after their death.
Of course it is very difficult to think about what will happen when your parents are no longer around. But it is important to give the matter due attention while you still can. Remember, a deceased person’s estate will be subject to inheritance tax if it exceeds the threshold. This currently stands at £325,000 if you are single and £650,000 if you are married. Anything that surpasses this will be taxed at 40%. This could mean that everything your parents have worked so hard to achieve over their lives will pass to the government, rather than to you and your family.
To avoid this from happening, you need to start planning now. There are a number of ways you can to this. First of all, you might want to consider signing over property or other assets to children now, thereby ensuring the estate remains below the inheritance tax threshold. Additionally, you could choose to make a number of tax-free gifts, transfer money into Trusts and give away money to assist with family maintenance. All this will help safeguard assets, leaving them intact for your loved ones to enjoy.
For more information about this article or any aspect of our Wills and Probate services please call us on 01926 484488 and we will be delighted to help you (there is no charge for an initial telephone discussion).