Credit crunch has positive implications on estate planning
The recent economic slowdown could be good news for those looking to limit inheritance tax liability, according to estate planning company, Trust Inheritance.
As one of the only positives to come out of the recession, individuals are advised that the credit crunch presents a golden opportunity to plan the distribution of their estate and avoid high levels of inheritance tax.
According to figures released by Nationwide, house prices have dropped by 15% in the past 12 months. In addition to this, the FTSE 100 index is at its lowest level in over 5 years. These factors, combined with capital gains tax at its lowest rate for 40 years, means that more and more individuals are taking advantage by making a will now, in order to lessen the impact of future inheritance taxation.
The amount of taxation on lifetime gifts is determined at the time they are given away. As long as it is an outright gift, and benefactor survives for a further 7 years then they will make significant tax savings. Therefore, it makes sense to consider estate planning and making a will when prices are low.
A spokesperson for Trust Inheritance had this to say: “It is always important to have effective estate planning in place to make sure that you minimise inheritance taxation. The recent slump in the value of assets such as property and shares makes it an ideal time to consider making a will.
To find out more about how you can take advantage of the current economic climate when making a will, visit http://www.trustinheritance.com or call 08000 97 80 12.