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Inheritance Tax

Independent financial advice

Estate planning, or inheritance tax planning, is a way to make sure that your estate passes on after your death in the most tax-efficient way possible.

Planning also allows you to consider who you want your beneficiaries to be and when you may want them to receive financial help.

The Rules for Inheritance Tax

Your estate is made up of everything you have, including your home, property and savings. After any debts are paid, anything over the tax-free allowance of £325,000 could be subject to 40% inheritance tax. We know that losing a loved one is devastating enough already, without the prospect of such a steep tax bill.

However, there are several ways that this can be reduced or mitigated, and our expert advisers can offer advice on the right decisions for you. Typically, this would be done by putting your assets into a trust. This would mean they no longer belong to you and may therefore no longer be subject to inheritance tax.

Estate Planning the Right Way

Solutions to inheritance tax mitigation can include trust planning, which is a complex area of financial planning, making use of annual allowances permissible by HMRC, and making gifts.

For any of these solutions to be effective they must be planned carefully and abide by HMRC rules. For example, for an outright gift to be exempt from inheritance tax needs to be given 7 years before death. This requires careful planning to make sure you are not left short in later life by any gifts you make.

Your adviser will discuss inheritance tax planning and mitigation, and advise on how this can be achieved whilst still achieving your other financial planning objectives. If you would like to learn more about Estate Planning, please get in touch.

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