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Inheritance Tax Planning Advice From A Solicitor

Lawyers warn people to consider planning their taxes and wills as the value of family heirs will drop sharply due to the recent economic situation. 

The family home has lost a staggering £1 billion in value in the current economic downturn that saw equity and real estate markets crash in August 2007.

So now specialist lawyers advise local residents to ensure that the will you create reflects the current environment, otherwise the targeted beneficiaries could suffer disproportionately from receiving certain gifts, which is common practice when making wills.

Statistically, more than 600,000 people die in the UK every year and around 70% of those who die are homeowners. It’s not surprising to know that most of these deaths will result in house prices falling by around 20%, with the FTSE dropping more than 40% over the same period.

However, not all is doomed and gloomy, because the value of assets has not declined at all; movable property and other property increases in value, especially precious metals, including gold and other jewelry or certain items.

To help you plan your tax legacy, I was given the following advice from a Hampshire law firm and was invaluable in ensuring Will is prepared for this economic climate.

For assets that have been depreciated in value and are not required, consider giving them to reduce the current liabilities of the ILC, but equally important is to crystallize their value at current prices.