It is important to take specialist advice to ensure that your family are protected from inheritance tax. Turcan Connell's team of trust and tax experts, featuring some of Scotland's leading practitioners, can provide detailed advice and guidance.
Inheritance tax is charged at 40% on the value of assets passing on death (subject to the nil rate band) and value reliefs on exemptions apply.
This tax liability will significantly reduce the assets available to the beneficiaries and may force the sale of valuable family assets.
However, significant reliefs are available, especially on business and family assets, to reduce or cancel the tax liability. It is essential to consider how best to maximise the benefit of their reliefs.
Planning should be considered on an ongoing basis – lifetime gifts are free of tax after seven years, and the rate bands are refreshed after that period, so early action can significantly reduce tax bills.
Planning for spouses is particularly important and Wills should be considered as part of the process. Giving early to young beneficiaries can create its own issues and trusts or family partnerships can play an important role.