Estate and Inheritance Tax Planning
What is inheritance tax (IHT)?
Inheritance tax is a tax on the estate of someone who has died, it includes property, money, possessions etc as well as potentially any gifts that they have made in the lead up to them passing away.
The inheritance tax rate is currently 40%, but it is only charged on the part of the deceased’s estate that exceeds £325,000. This is referred to as the nil rate band (NRB) meaning the estate will only pay inheritance tax on the part of the estate that exceeds the nil rate band of £325,000.
Residence nil rate band (RNRB)
The residence nil rate band (RNRB) is an additional amount that can be offset against the family home. Currently the residence nil rate band is £175,000 per person. The residence nil rate band can be used together with the nil rate band to give individuals a total inheritance tax free amount of up to £500,000.
Estate planning is necessary & urgent
There are options available to mitigate or ensure timely payment of Inheritance Tax, to ensure your estate is passed on as intact as possible to your beneficiaries. However, these options can be complicated and require expert advice to manage effectively
Nobody knows how long they will live, how much money they will need or what unexpected life events may occur. Sitting down with an expert advisor can help visualise, plan and implement the right estate planning solution for you and your family.
Our advice can cover:
- Understanding your current IHT position
- Gifting and lifetime transfers
- Insuring the tax liability via a family trust
- Use of IHT exempt or relieved assets
- Use of Trusts to mitigate your IHT position
Contact us today for a free, no obligation initial consultation
