Enable’s Independent Financial Advisors like to know about the people they help to plan for financially. So much of our financial planning is about taking care of our families or spouses and making sure we make the most of our assets and income. So planning with your spouse to make the most of your assets comes as no surprise.
There have always been advantages for married couples in financial planning but relatively new inheritance tax rules have come into place for married couples and civil partners who are now allowed to pass their possessions and assets to each other tax-free. This is something experienced Independent financial advisors like those at Enable of Bishop’s Stortford would be able to help you with.
Since October 2007, the surviving partner is now allowed to use both tax-free allowances (providing one wasn’t used at the first death). Meaning married couples and Civil Partners can boost their IHT-free allowance by claiming any ‘nil-rate band’ their deceased partner has not used. The allowance currently stands at £325,000 per person. So it means that if the first partner has made no use of their nil-rate band (by leaving everything to their spouse, for example), the second partner effectively has a double allowance of £650,000. If the first partner used part of their allowance, the unused proportion is carried over to the second - and applied at the current rate. At Enable we would be happy to help you think through your financial planning to make sure it benefits the whole family.
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