Making a will to ensure the best use of your inheritance tax exemptions
This is the third in a series of articles explaining in simple terms the reasons for making a will.
In this article we consider the option for utilising inheritance tax exemptions when making your will.
The simplest exemption which can be taken advantage of is the spouse (civil partner) exemption under which any part of your estate which is left in your will to your spouse (civil partner) is entirely exempt from inheritance tax (save for spouses who are foreign nationals).
You can also leave gifts to charitable organisations in your will which will also benefit from 100% exemption from inheritance tax. Furthermore, if you leave 10% or more of your taxable estate to charity, the rest of your estate will receive a 10% reduction on the inheritance tax payable.
There will also be situations when it is appropriate to leave what is known as the nil-rate band (currently £325,000.00) directly to named individual(s) or more likely to a specific trust set up under the terms of your will to utilise to best effect the exemptions available to you as an individual.
At Solomons Solicitors, we have extensive experience of making wills for people in all types of relationships. Please contact us directly on 01202 802807 to make a free initial meeting at our main Bournemouth office or Christchurch