Inheritance & estate planning

Inheritance planning

Inheritance Tax planning to protect your wealth is vital. If your estate exceeds the Nil Rate Band which is currently £325,000, 40% of your estate could be lost to Inheritance Tax when you die and could considerably reduce the estate available to pass on to your beneficiaries. 

In addition to the Nil Rate Band, the Residential Nil Rate Band was introduced in 2017 and your estate could benefit from a further £175,000 of Inheritance Tax allowances subject to certain conditions being met. The rules are complex, and you may also be able to benefit from a ‘downsizing addition’ instead of the Residential Nil Rate Band if you no longer have a property in your estate. 

Fortunately, there are many ways to minimise your exposure to Inheritance Tax. Making sure you structure your affairs tax efficiently, in line with your objectives, with a view to meeting your long-term plans is essential. 

Planning should be as straightforward as possible as tax legislation and your personal circumstances will change over time. 

We advise on different ways to reduce Inheritance Tax such as the use of Agricultural and Business Property Relief and making gifts. 

Inheritance Tax is not just a tax on death, it can arise during your lifetime. We will take Inheritance Tax into consideration if you are changing your asset profile or transferring assets into a trust. 

We can undertake a full review of your Inheritance Tax position and some of the  planning services we provide in order to minimise your Inheritance Tax liability,  include making lifetime gifts from income or capital; the use of trusts, that could potentially pay school fees and reviewing your investment portfolio to establish whether holding alternative investments could help reduce you potential Inheritance Tax Liability.  

You may also want to take out an insurance policy to provide a lump sum to pay the potential tax due. Our Wealth Planning Team can assist with reviewing your investments, recommending alternative investment strategies to mitigate Inheritance Tax as well as helping cover any liabilities with life assurance.

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