01732 868190
Published on: 24th August 2020
The Main Residence Nil Rate Band ~ Friend or Foe?
The Main Residence Nil Rate Band is an allowance against Inheritance Tax (IHT) which was introduced in April 2017. Broadly speaking it is an allowance for those who own a house (the Family Home) and are passing it to their children. The legislation is, however, extremely complicated especially if any part of the estate is held in trust.
One of the criteria of the legislation is that the estate must be under £2 million otherwise the allowance is lost on a taper basis. So if you have assets over £2m you may wish to consider a strategy to reduce your estate value. We can assist with certain trusts that can reduce the valuation of your estate (for inheritance tax purposes only). We also work with Chartered Financial Advisers who can advise on IHT reduction strategies.
Furthermore, we work with Estate Administration and Probate specialists who are expert in claiming the maximum allowances. Just this week we have helped a client, a surviving spouse, who had been told by another practitioner that they had an inheritance tax liability of over £19,000 on their late husband’s estate. Our specialists reduced the liability to £0. Furthermore, we have arranged the estate so that when the surviving spouse passes away there will be an extra £175,000 worth of allowance available.
Handled correctly the Main Residence Nil Rate Band can be a friend. However, for the unwary the friend can quickly turn into a foe.
For more information about Casey & Associates solutions that maximise IHT allowances that are available please contact us using the contact page on our website here or telephone 01732 868190 and we will arrange a no obligation appointment with one of our Consultants.
======================================
Our Covid-19 policy is now that if you require general information about our Wills, Lasting Powers of Attorney or Trusts then we will carry out a telephone appointment. However, if you wish to give instructions to one of our Consultants we are offering Face to Face appointments from 02 September 2020 in most of the areas we normally cover (subject to Government advice). To see the areas we normally cover please click here.
If you would like to meet one of our Consultants and discuss any of the issues raised in this article or any other Estate Planning topic, please telephone 01732 868190 or