Inheritance Tax Planning

Many people view Inheritance Tax as a double taxation. You pay tax on your funds during your lifetime, and after your death your estate is taxed again on the same funds. It has become a very unpopular tax.

Even though the Inheritance Tax threshold is a sizeable £325,000 (and £650,000 for joint estates), many will still have potential for an Inheritance Tax liability due to property values, although there are new allowances being phased in for your main residence which may help to some degree…

Careful planning can help reduce this potential liability or provide funds to pay the tax. Some of the measures that could be considered include:

• Making a Will

Using exemptions and reliefs, keeping records and more

• Leaving funds to charity

Charitable legacies qualify for a reduced rate of Inheritance Tax, with a 10% charity donation

• Life assurance

You could consider taking out a life assurance policy which would pay out funds to your beneficiaries, to provide funds to help meet any Inheritance Tax liability

• Reliefs

Understanding if/how you qualify for relief on part of your assets including Inheritance Tax relief for businesses, agricultural land, woodland and, in rare cases, National Heritage property

• Trusts

Understanding trusts and how they’re used. What is the meaning of the terms: settlor, trustee, beneficiary and trust property?
Contact us for a free initial consultation to discover ways of reducing your potential inheritance tax liability