2007-02-15 13:19:00 · 2 answers · asked by anneeee 1 in Politics & Government ➔ Law Enforcement & Police
If Inheritance Tax is applicable, you should consult an estate solicitor and probably a chartered accountant - make sure they both know what the other is doing. Seriously, IHT is not relatively simple. Even the principles are not as intuitive as income tax.
If the estate is below 285,000 you have no IHT to worry about. However, you do have to establish that. last year there was a change in the law regarding life insurance contracts written in trust. Make sure you understand the position of any such policies. Is there any business property? make sure that it is accounted for and that the appropriate relief is obtained.
Is there a spouse involved? Again, make sure that the correct relief is applied and consider a Deed of Variation if the wills have not been regularly updated.
My advice is to take everything you have, or have knowledge of, and take it to a solicitor. They can advise you of the correct way to proceed. If there is going to be income from the estate find out who will do the estate's income tax return. Some solicitors will and some won't.
If you are simply thinking ahead for yourself (I hope this is the case, otherwise my condolences) then you could do worse than Tolley's Inheritance Tax. It is not overly expensive and is written with one eye on the accounting professional who does IHT from time to time. However, if you are to adopt any sensible IHT plans, a will is essential and it must be updated as often as circumstances dictate. Also, as mentioned earlier, laws do change. The tightening up last year of the insurance policy provisions has closed a loophole that was a routine part of tax planning for years. If you do read a book to gain knowledge, remember that you will have to update it every year. I think you will find that it is cheaper to engage a professional as appropriate.
2007-02-15 22:11:16 · answer #1 · answered by skip 6 · 0⤊ 0⤋
get a local tax book from a accountancy book stockist. It is relative simple...if you are looking are basic principles..and this will give all the information you need...but if it complicated and it is a big estate you are dealing with then it is better to get professional help
2007-02-16 03:24:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋