Monday, March 10, 2014
Inheritance tax is a growing concern to people in their 60’s and 70’s. The inheritance tax threshold in the United Kingdom has been set at £325,000; anything over that amount is taxed at 40%. Government information indicates the average property price in London is over £430,000. This figure is well above the £325,000 threshold, which will be in place until 2018. During the same time, property values in the area are supposed to rise by 25%. Research from Close Brothers, a financial services group, shows that only 50% of respondents with assets above the tax threshold even knew about it. One option for some homeowners to reduce the expected inheritance tax is to take out life insurance held in trust.
See Rachel Constantine, Younger Adults Turning Their Attention To Inheritance Tax, QCK.com, Feb. 19, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.