Planners, Inheritance Tax

 

This planner assesses the scale of a potential inheritance tax liability, and whether the whole of life or similar policy taken out to cover it should be level, decreasing or increasing.

 

The following notes should be read in associate with those in “Planners, Starting & Warning”, “Planners, Default or Standard Values” and “Planners, Saving, Re-finding & Deleting”.

 

On the first screen, illustrated below, enter or edit the client’s name, edit the standard or default values as required and click one of the buttons at the bottom right of the screen to select whether you’re doing the plan for the first, second or both lives. Press the PgDn key or click the black “Curve Right” button when ready to move on to the second screen.

 

 

On the Personal Assets and Business Assets screen, illustrated below, enter the current value of personal assets (e.g. car, paintings, etc) and the growth rate of each. A car will typically devalue at around 15% (i.e. enter –15) while a building might increase by the same amount (i.e. enter 15). You can also edit the words “Main residence” to read “42 High Street” or “Van Gough” to make the plan clearer. Similarly enter values for the other fields in the “Business Assets” section, then press the PgDn key or click the black “Curve Right” button to move on to the next screen.

 

 

On the Gifted Assets And Liabilities screen, illustrated below, similarly enter values for gifted assets and liabilities, then again press the PgDn key or click the black “Curve Right” button to move on to the final screen.

 

 

The final screen, illustrated below, displays the total assets and liabilities before gifts, the relief on the gifts, and hence the net total asset position, both before and after the current “Nil Rate Band” for inheritance tax. Finally the inheritance tax liability is shown at the current rate of that tax (N.B. all these rates are stored as defaults, that can be changed – see “Planners, Default or Standard Values”).

 

 

A report can then be displayed, as shown below, by pressing the PgDn key or clicking the black “Curve Right” button. This shows how the inheritance tax liability will remain, grow or diminish over the forthcoming years, and hence what type of plan is required to meet it.

 

 

When you’re satisfied with it you can save the plan, then subsequently re-find it, all as described above in the section on “Planners, Saving, Re-finding & Deleting”.

 

To print the completed plan…