Estate planning is a complicated matter with many interrelated issues to consider. Our tax team can help you with all of your estate planning requirements whether you reside in the UK or are overseas with assets back home.
Inheritance tax is a cost that has to be paid on your estate, everything that belongs to you at the time of your death, and can also be charged on both trusts settled and gifts during your lifetime. With skilled planning, we can reduce or even eliminate the inheritance tax liability on your death, so it is well worth employing an accountancy firm such as ours to take care of your inheritance tax planning requirements.
There are many aspects of estate planning, but the main ones are investments, property, insurance, pensions and assets which can include jewellery, furniture, art or vehicles. In addition, inheritance tax may also be payable on gifts that you have given to another person but that you still benefit from, any gifts that you have given in the 7 years before your death, and any assets which you hold in trust, but still benefit from.
In the 2015/16 tax year you can have an estate up to the value of £325,000 before you need to pay any inheritance tax, and everything above this figure will be charged at 40%. If you are married and your spouse’s inheritance tax allowance is not used on the event of their death, their allowance can be transferred to you. Any assets which have been transferred between spouses or civil partners are not liable for inheritance tax.
Inheritance tax planning
If you plan carefully then there are several steps that you can take to reduce the inheritance tax bill that your beneficiaries will have to pay on your estate, these include:
- Life Assurance – While life assurance won’t reduce your inheritance tax bill, if it is set up to pay out in trust then the payout can help to cover the cost of inheritance tax
- Preparing a will – A tax efficient will can help to significantly reduce your tax bill
- Explore exemptions – As specialists in inheritance tax we will be able to outline the exemptions in place that can help you reduce the value of your estate, these will depend on your individual circumstances.
- Gifts – Depending on your financial circumstances, gifting a proportion of your assets can go some way to reducing your inheritance tax.
Inheritance tax is the only tax which is paid on a voluntary basis and using our expertise in estate planning and inheritance tax, we can work with you to reduce your bill as much as is legally possible. The importance of good planning should never be underestimated, as without it an estate may have to pay 40p in the pound to the government in tax.
Start planning early
Due to the nature of inheritance tax, many people often leave it too late to implement the strategies that could have reduced the amount of tax to pay. Subsequently, any wealth passed on to the next generation will be significantly reduced, so it is always advisable to start planning as early as possible and to keep plans up to date with changing circumstances.
We can carefully evaluate your estate or your family member’s estate, identifying what inheritance tax may be payable and then develop effective strategies to reduce and, where possible, eliminate the requirement to pay inheritance tax through efficient short and long-term planning strategies.
Benefits of insurance tax planning
Any endeavour that can save a lot of money is worth spending time on and Inheritance tax is no exception. You work very hard for your money so let us help you pass more of your assets on to your family, rather than making a gift of 40% to the government.
The earlier you start planning, the more strategies and approaches will be available to you for us to review and help you implement.
The savings that we can generate from inheritance tax can be substantial, leaving your family many thousands of pounds better off. It is reassuring to know that in the event of your death you will leave enough money to your relatives for them to deal with any eventuality.
We offer a free initial consultation where you can speak to our estate planning experts in complete confidence and discuss your circumstances and wishes. Inheritance tax can be very complicated and you should seek advice from a suitable qualified advisor who is experienced in dealing with estate planning and inheritance tax. We will carefully review your circumstances and your requirements and explain to you how we can help.
Estate planning and inheritance tax services
- Comprehensive advice and guidance on everything to do with inheritance tax. We will explain what it is and strategies that could reduce your inheritance tax
- Assistance with planning your estate which can include granting lifetime gifts
- Helping with wills to ensure that the right people will benefit from your estate
- Maximising the use of exemptions, particularly those relating to married couples and ensuring any outstanding inheritance tax allowances are transferred to the remaining spouse
- Reviewing your circumstances to check whether you are eligible for any reliefs or exemptions such as those relating to business property or agricultural premises
- Considering the use of trusts, including when you are not resident in the UK to safeguard any assets that you have overseas
We have years of experience in estate planning and inheritance tax so you can be rest assured that your tax affairs are in safe hands and will be managed by experts. Our professional knowledge and skills will ensure that your inheritance tax planning requirements are fully addressed.