INHERITANCE TAX

Inheritance Tax “IHT” is simply a tax on a person’s wealth. It is very likely that this wealth has already been taxed in a number of ways such as Income Tax, Capital Gains Tax, National Insurance or even previously paid Inheritance Tax. It is therefore a very unpopular tax and one that with careful planning can be completely avoided.

IHT planning, also known as Estate Planning arrangements can be complex and costly to set up. It is important therefore that proposed solutions have due regard to the amount of tax saved and the personal circumstances of those involved. Inheritance Tax planning solutions should not be seen in isolation but should be part of an overall Financial Planning exercise as there are a number of related benefits to certain types of planning. These benefits include wealth generation skipping, protection of assets from creditors, protection of assets from the cost implications of long term care, protecting assets in the event of beneficiaries divorcing, as well as potential future tax savings.

With careful planning, in many, many cases Inheritance Tax (IHT), which is charged at 40% of assets in excess of the Nil Rate Band, can be completely avoided and your estate can be distributed in an efficient manner to those who matter most to you. This can be achieved through a number of Estate Planning techniques involving Wills, Trusts, Property Ownership, Life Policies, Gifts and Investments.

The opportunity for considerable tax savings by making use of Wills has largely been negated by the new IHT rules and the ability for Nil Rate Bands to be carried forward after the first death (for married couples and civil partners). It is still vitally important however that you have up to date and valid Will in place in order that probate delays can be avoided and assets be distributed as per your wishes.

We have many years experience in providing bespoke IHT and Estate Planning solutions to Clients and can assist no matter how complex or simple your estate may be. In one recent case we saved a Client over £467,000 in tax!

We can help with all of the processes involved such as legal documentation, drafting Wills, Trusts, Deeds of Variation, Assignments, Gifts, Life Policies, Property Ownership and Investment solutions.

Please do get in touch if you would like to discuss how your IHT burden may be reduced.