I live with my partner but we are not married. What about Inheritance Tax?
Inheritance tax is a tax which is paid on the value of all you own when you die. The threshold above which you must pay 40% tax is currently £325,000 (known as the Nil Rate Band). For example, if your estate (everything you owned at the time of death, including your house value) was worth £425,000 then you would have a taxable estate of £100,000. This would give rise to a tax bill of £40,000 and therefore less money going to your loved ones. The inheritance tax threshold for a married couple is £650,000 for the current tax year, providing they leave everything to each other on first death.
However, this is not good news for everyone as this system doesn’t help couples who are not married, and it doesn’t help those who don’t want to leave everything to their surviving spouse.
If you are an unmarried couple, you could benefit from the inclusion of a Nil Rate Band Discretionary Trust in your Will to allow your partner to make use of your £325,000.00 allowance.
Other Trusts available include:
For more information or to book your FREE will review, call me, Danielle at DS Wills & Estate Planning today on 01642 968707. Alternatively, fill in the callback form on this page.