Wills & LPA
What is inheritance tax?
Inheritance tax (IHT) is potentially payable when an individual transfers value from their estate. This transfer may take place during the individual’s lifetime or on their death.
The amount of IHT payable to the government is based on the value of the transfer, over a certain amount, taking into account the available exemptions and reliefs.
IHT amounts to 40% on any chargeable part of your estate, meaning your children, grandchildren and others may have to pay the government 40% of what they inherit if tax planning is not considered.
Why inheritance tax planning matters
Planning the most efficient way to pass on your wealth, in line with your wishes means you can limit the impact of IHT and protect your beneficiaries from unexpected tax bills:
- Reduce the tax burden on your estate
- Protect family wealth
- Preserve property and business assets
- Maximise eligible exemptions and allowances
- Minimise disputes and stress
Our guidance on inheritance tax planning ensures more of your assets are passed down through the generations, rather than being eroded by tax.
What we can do for you
For individuals, property and business owners
- Combine our knowledge on IHT tax rules with other wider taxes
- Explore eligibility for reliefs and exemptions
- Explore gifting assets and value during your lifetime
- Explore your options for setting up trusts
- Consider the whole tax picture
Simply put, inheritance tax planning is the use of tax legislation to determine various methods in which a transaction can be structured to achieve the most efficient tax outcome while remaining fully compliant with the law.
Ready to get started on planning around inheritance tax?
We have a simple five-step process to support you with your IHT planning.
1
Initial review and planning
We’ll begin by understanding the wider aspects - your scenario, your objectives, and your exposure to various taxes
2
Estate assessment and tax analysis
We review the composition of your assets, liabilities, and potential reliefs to identify where IHT exposure exists
3
Strategy and recommendations
Here’s where we outline the tailored solutions, ranging from gifting during your lifetime, using exemptions, trusts and business reliefs, to gifting on death via your Will. All designed to reduce your estate’s taxable value while aligning with your long-term intentions
4
Implementation & structuring
Collaborating with any legal and financial advisers we put the chosen strategies in place, ensuring all documentation and structures are compliant, efficient and clearly recorded
5
Ongoing review and family support
As your circumstances, legislation, or family needs change, we can revisit your scenario to ensure it continues to protect your wealth and support future generations
Get in touch
Don’t leave inheritance tax planning until the last minute, get prepared, get solutions and get started today.
