Don’t we all want to be able to pass our hard earned assets on to our beneficiaries without the threat of significant tax charges being levied on our estate?
If you are UK resident a married couple will pay 40% tax on any assets in excess of £650,000 so if you have a family home worth £1 million and other assets worth £.5 million your estate will face a tax bill in the region of £340,000. Don’t bank on using a lump sum from a pension to settle this bill either, beneficiaries will be subject to a 55% tax charge on any pension which is in drawdown.
The situation can be even worse if you are resident in Spain. Unlike the UK there is no spousal exemption and allowances before tax is due are very modest. There is even the likelihood that your assets could be subject to both UK inheritance tax and Spanish succession tax if the UK remains your country of domicile.
Our experience tells us you need to act sooner rather than later. There are plenty of legitimate ways to mitigate death taxes with proper estate planning that will stand the test of time. However the longer you leave things the more difficult it can sometimes be to put in place any sort of arrangement that will be acceptable to the tax authorities.
Death tax is often seen as voluntary you can mitigate it or avoid it all together. Why not speak to an adviser by calling 674 632 219 or email wealth@fiduciarywealth.gi.
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