Estate & Inheritance Tax Planning
Estate planning involves making decisions and creating a strategy to transfer your assets to your beneficiaries in the most tax-efficient way. A significant aspect of estate planning is minimizing the Inheritance Tax (IHT) bill. Inheritance Tax is no longer just for the wealthy; it is the tax paid on assets left behind when someone dies, after applying any IHT allowances or exemptions. There are numerous inheritance tax planning opportunities available, allowing you to take various steps during your lifetime to maximize the wealth passed on to your beneficiaries by reducing the tax on inheritance.
Expert tax advisers
We can utilize a variety of UK inheritance tax planning tools to help manage your IHT liability. By reviewing your current assets and personal circumstances, we can assess your current IHT exposure and provide tailored strategies to minimize it.
A breadth of knowledge
We are a team of chartered tax advisers, offering expert inheritance tax advice along with a range of other tax planning services.
Bespoke advice
Our approach involves having one of our inheritance tax advisers listen to your goals and then provide advice tailored to your wishes.
Estate planning
Your estate is as unique as you are. It consists of everything you own, including family businesses, property portfolios, savings, investments, and overseas assets. Life events such as births, marriages, deaths, and divorces can all impact unprotected legacies. This necessitates careful consideration of the full range of options available to ensure your cash and assets are protected and passed on according to your wishes.
Effective estate planning can protect your assets from threats such as divorce, separation, and bankruptcy, while also reducing tax liabilities for future generations. It is essential that your estate planning strategy aligns with your wishes and specific circumstances, such as the composition of your estate. While inheritance tax (IHT) is primarily a tax on your wealth, it can also apply to certain transfers made during your lifetime, such as gifts given before your death or transfers into a trust.
The current rate of IHT is 40%, with a nil-rate band of £325,000. If you are married or in a civil partnership, you have a combined nil-rate band of £650,000. Any amount above this threshold is taxed at 40%, although this rate can be reduced to 36% if you leave at least 10% of your estate to charity. Given the rise in property prices, IHT is no longer just a concern for the wealthy, as many people’s homes now exceed the £325,000 threshold, making inheritance tax planning essential.
The amount of IHT your estate will need to pay depends on various factors, including your domicile, the assets you hold, and your marital status.