Many more people worry about inheritance tax than actually end up paying it. This is partly because they are not sure how it is calculated and partly because house prices in the South East put even a modest Semi-Detached house above the nil rate band. But whatever someone’s age. A potential bill can almost always be reduced. Just don’t wait until you are 95 to start!
Of course what people really should worry about are care home fees. IHT can never take more than 40% of everything over £325,000 (£650,000 in some cases for couples). But councils can take 100% of everything over just £23,250 to cover care home costs.
If you give away an asset and live 7 years you can avoid IHT completely
If you give away money or assets and then need to go into a care home there is no specific time limit for looking back.
However, the good news is that with careful planning you can improve just about any situation and avoid the elephant traps in the system, especially in cases where elderly relatives move in with their family.
Live is too short to waste with worry or regret – why not contact me to check out your own or your parent’s situation.