Protecting the family home and family assets from the state can be a real concern to people as they get older. There are two things in particular that people want to avoid – selling their home to pay nursing home fees and inheritance tax.
The current limit for inheritance tax is £325,000 which can be doubled for a married couple to £650,000. Most people do not have this amount of assets but the tax then kicks in at 40% making a real dent in a large inheritances. People often feel that this money is hard saved and hard earned and taxed when earned and therefore want to minimise any further tax.
Luckily, there are steps that can be taken to avoid this tax; arrangements can be set up to keep control of the family assets while at the same time passing value down to the next generation. The catch is that plans should be put in place when there are 7 years’ life to look forward to, and so it is best to make plans when you are in robust health.
Nursing home fees can take away someone’s main assets including their home, assets that they have spent their lives building up by carefully saving and doing the right things. Again, plans for looking after assets at the end of our lives should be made while in robust health and steps should be taken as early as possible to ensure that family assets are kept in the family.
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