We wont pay inheritance tax because we are a couple?

Inheritance Tax does have a exclusion for “Married” or “Civil Partnerships” meaning that are spouse or other half would legally receive all the estate WITHOUT paying Inheritance Tax. its called the “Spousal Exclusion”

The important things to note here we have to be a “Married” couple and how does this impact on our family when both pass?

Inheritance Tax often know as the “Death Tax” is silently waiting to claim your families money unless you protect it. After all we are all going to pass that estate will go to the wider family or someone…

We could look at a life insurance policy which is put into trust (so that policy is inheritance tax proof) however this can be said to be wrong. If A & B are insured A was to pass the claim would be made and the insurance would pay out. This makes the estate bigger for family in the event of the next claim. If you didn’t claim the money and left the monies in trust there are additional “ongoing” admin fees and costs which are a % of the lump sum.

Therefore, the most efficient way of protecting this family is we set up a life insurance protection which pays on the 2nd person passing. Not only is this a cheaper solution as a monthly premium but family get the monies (tax free) when they need it – without increasing the size of the Inheritance Tax liability!

Failing to protect using life insurance is also an option – we can always do nothing! Many families say “just sell the house” This is a good idea but the estate will not be released to others until HMRC have received the paid inheritance tax bill. (Tax is chargeable from month 6 as a percentage of the estate – probate usually agreed on average month 9! Additionally; You can not sell a house you don’t own! This unfortunately means may families have to self finance, re-mortgage, use bridging loans and or use probate loans to raise HMRC’s money – then they can start the process to sell that house. (selling a house isnt the quickest thing either !) 

For Free independent advice Golden Rock would love to speak to you about protecting the known cost of Inheritance TAX or the “DEATH TAX”. Everything is private confidential please get in touch for more information and support 

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