Inheritance Tax Planning

Inheritance tax is one of the main tax liabilities that may apply after death. There are a number of ways in which the amount you have to pay can be reduced or even eliminated. Find out more below.

Inheritance Tax

Every individual has an allowance (where the tax charge is nil), which is called the Nil Rate Band. The Nil Rate Band is currently £325,000 per person and has been frozen at this level until 2020/21. Therefore, for married couples, or those in civil partnerships, the allowance is 2 x £325,000 = £650,000.

Inheritance Tax (IHT) is payable on any person’s estate, if it exceeds £325,000, at a rate of 40%. The tax charge reduces to 36% if you leave at least 10% of your assets to charity.

There are a number of ways in which your tax liability can be reduced, which includes making gifts during your lifetime and the use of trusts. Find out more about how you can reduce your Inheritance Tax Liabilities, and what your options are by downloading our free Inheritance Tax Fact sheet.

Estate Planning

Inheritance Tax can also be reduced, and in some cases wiped out altogether, with a carefully constructed Estate Plan.

Advising clients on wills and trusts and knowing where to refer them to get the best advice, is something that we consider an important part of our role as your financial advisers. Done properly, this allows our clients to benefit from structures that allow for things like reduced inheritance tax.

One of the main reasons that many families use a more complex estate plan, rather than a basic will, is to protect their wealth from a wide variety of threats and to try to ensure that their wealth and assets remain within the family. Ensuring you have a carefully constructed estate plan in place means that you can effectively continue to control your wealth from beyond the grave in ways that are simply not possible with a basic or standard will.

We are partnered with a local Estate Planning company (Wellingborough Wills) who provide this service to our clients.

Contact us for details

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