Inheritance Tax Planning

Tax planning services like inheritance tax planning are not just about leaving money to your loved ones once you pass away; it’s also about living comfortably today. This is why getting a head start on planning is crucial. Working with our chartered accountants can help you determine how much money you’ll need, advise you on how best to transfer assets, and collaborate with you to manage or minimize an inheritance tax burden.

On estates valued more than £325,000 at the time of death, inheritance tax (IHT) is due at a rate of 40%. It may be 20% less and become due upon specific lifetime donations of assets. Nevertheless, planning options are available, such as giving assets to family and friends, making charitable contributions, or using a Family Trust that can reduce the tax owed on your inheritance. The most crucial aspect of this planning is that it is personalized for you and aids in carrying out your final desires for your estate.

Although making explicit gifts can be the simplest method to plan for IHT, you might not want to do this. This is frequently when trusts or family investment companies can be considered part of a long-term strategy to include your family and friends in your wealth without entirely giving it up during your lifetime.

In general, it’s never too early to start planning for IHT. Most people frequently think about tax planning when creating their first will or revising an existing one because the two activities go hand in hand. One benefit of starting early preparation is that once a gift is made, the “7-year clock” begins to run. If you have made an outright gift, the value of your gift completely exits your estate if you live for seven years.