Inheritance Tax Planning
All moderately wealthy individuals and couples should consider taking a review of their estate to minimise Inheritance tax. Without careful planning, a substantial liability may be left after you die, which would result in lower bequests than you hoped for.
Inheritance tax is charged at 40% on the value of the estate over the ‘nil rate’ threshold. You are able to use the first spouse’s nil rate band when the other partner dies, but this still leaves a large proportion of people at risk. With some careful planning, the tax burden can be significantly reduced.
We utilise tax planning methods such as:
- Gifts using tax free allowances
- Renewal of your wills to incorporate tax efficient change
- The use of trusts
- Options with the family home, any businesses or agricultural assets
- Transfer of ownership or the sale of assets to relevant family members