Inheritance Tax & Estate Planning Advice

Inheritance Tax Planning

How Inheritance Tax Works

  • When you die, HMRC want their final grab at your wealth and your estate may be taxed at 40% on anything above the current IHT threshold. 
  • All individuals have a current threshold of £325,000 before IHT is applied and in some cases an additional £175,000 Residential Nil Rate Band may apply.
  • Married couples can transfer unused allowances, meaning the surviving partner may benefit from a combined threshold
  • From April 2027, pension pots will be included in the value of your estate for IHT purposes

Without planning, IHT can significantly reduce what your beneficiaries receive.

Consider this example:

  • Your home worth £600,000
  • Additional assets and investments of £200,000 
  • Pension pot of £350,000

In this scenario, the Inheritance Tax liability for a single person could be as much as £330,000 or £200,00 for a married couple, which is a lot of tax.

IHT needs to be paid within six months of dying and, if there are insufficient liquid assets, your property may need to be sold to cover the tax bill.

Proper IHT & estate planning can reduce or mitigate the effects of IHT on the money you want to leave to your loved ones.

Reducing Your IHT Liability

Options may include:

  • Lifetime gifting
  • Establishing trusts
  • Long-term estate planning

These strategies require careful planning, as they can affect your access to assets and future financial security.

How We Can Help

We provide expert guidance to help you:

  • Assess your potential IHT exposure
  • Structure your estate efficiently
  • Reduce unnecessary tax liabilities
  • Protect more of your wealth for future generations

Our goal is simple - to ensure you pay what is legally required, but no more than necessary.

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