Inheritance tax is levied on the value of a deceased person’s estate. While some may believe it's inevitable and feel their money is theirs to spend, others prioritize minimizing tax to benefit their heirs. IHT planning is particularly important for those who want to ensure their wealth is passed on efectively.

When to Start Tax Planning

Many people hesitate to discuss death, which can lead to complications later. Certain reliefs can significantly reduce inheritance tax, but they often require a structured plan to be in place for at least two years before they apply—and longer in some cases. Waiting until frailty or poor health sets in can limit your options, so proactive planning should begin now.

What Is an Inheritance Tax Planning Service?

Our inheritance tax planning service involves assessing your current IHT exposure. This includes understanding the value of all your assets, any gifts made within the last seven years, and your residence and domicile status. We also discuss your intentions regarding asset distribution and whether you have a will in place to reflect those decisions.

Once we establish your potential IHT liability, we can explore strategies to mitigate it.

How to Reduce Inheritance Tax

Consider the following steps to reduce your IHT liability:

• Utilize Annual Exemptions: Take advantage of available exemptions, such as the annual gift allowance.
• Lifetime Gifts: Identify assets that can be passed to the next generation through potentially exempt transfers.
• Explore Reliefs: Investigate reliefs like business property relief.
• Charitable Gifts: Consider making charitable donations to reduce your taxable estate.

We will also identify any additional taxes that may arise and potential reliefs, such as gift relief for capital gains tax.

Should You Use a Trust for Inheritance Tax Planning?

Establishing a trust can protect your assets and facilitate their transfer to the next generation. We can advise on the tax implications of trusts but will collaborate with your solicitor for the documentation once your planning is further along.

Start your inheritance tax planning today to ensure your legacy is preserved for future generations.