How to Protect Your Family’s Wealth from Rising Inheritance Tax in 2024
Understand How to Protect Your Assets With Premium Will Writing Services in Hertfordshire
With new, significant changes to inheritance tax announced recently, impacting how families plan their estates, the need to look ahead and ensure your assets are protected has never been higher. With new introduced measures, aimed at increasing tax revenues, including adjustments to inheritance tax thresholds and reliefs. Understanding these changes and implementing effective strategies is crucial for protecting your family's wealth.
Key Changes to Inheritance Tax in 2024
Extension of IHT Threshold Freeze: The nil-rate band, the amount up to which an estate is not taxed, remains at £325,000. This threshold has been frozen until 2030, extending the previous freeze by two years.
Taxation of Inherited Pensions: Starting April 2027, inherited pensions will be subject to inheritance tax. Previously exempt, this change means that pension pots passed on after death will now be included in the taxable estate.
Reform of Agricultural and Business Property Reliefs: From April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax. However, assets exceeding this threshold will be taxed at an effective rate of 20%, due to a 50% relief on the standard 40% rate.
Strategies to Protect Your Family’s Wealth
Gifting Assets: Transferring assets during your lifetime can reduce the value of your estate subject to inheritance tax. Gifts made more than seven years before death are generally exempt.
Establishing Trusts: Setting up trusts can help manage how your assets are distributed and may offer tax advantages.
Utilising Annual Exemptions: Each individual can gift up to £3,000 per year without incurring inheritance tax. Additionally, small gifts of up to £250 to any number of people are exempt. Regular gifts out of surplus income can also be exempt, provided they don't affect your standard of living.
Reviewing Pension Arrangements: With pensions becoming subject to inheritance tax from 2027, it's important to review your pension arrangements. Consider drawing down on pension funds during your lifetime or exploring other efficient retirement planning options.
Updating Your Will: Ensuring your will reflects current laws and your wishes is crucial. Engaging with local will writers or a will-making service can help structure your estate plan effectively, considering the latest tax implications.
How We Can Help
At London Will Writing, we understand that planning for the future goes beyond drafting a simple will. With our expert guidance, you can implement a holistic approach to estate planning that safeguards your assets while aligning with current inheritance tax regulations. Our team of professional will writers works closely with clients to craft customised solutions, whether that’s through asset protection trusts, strategic gifting or tailored will-making services, reflecting your specific needs and goals. From optimising tax efficiency to ensuring your wealth benefits your loved ones, our expertise helps you make informed decisions for a secure financial future.
The Importance of Professional Guidance
Navigating the complexities of IHT requires expertise. Our professional will writers and estate planners provide personalised advice, helping you implement strategies like setting up an asset protection trust or other tax-efficient structures.
Our experienced team offers comprehensive will services tailored to your needs. As a leading will-writing company, we assist clients in protecting their assets and ensuring their estate plans are tax-efficient.
Safeguard Your Assets & Secure Your Future
The 2024 changes to inheritance tax underscore the importance of proactive estate planning. By understanding the new regulations and implementing effective strategies, you can protect your family's wealth from increased tax liabilities. Tax changes may seem complex, but with the right guidance, you can transform these challenges into opportunities to better secure your family’s financial future.
Contact Our Professional Will Writers in Hertfordshire
The time to act is now. Investing in professional will services is a proactive step toward safeguarding your assets, maintaining control over your estate, and ensuring that your wealth remains a lasting legacy for generations to come.
We’re here to help you navigate these changes and secure your financial future for your, your family and your protection.
Contact us for personalised assistance.
Phone: 01992472475
Email: info@londonwillwriting.com
