Inheritance Tax Planning
Preserving your wealth for future generations is an important part of financial planning. Inheritance Tax (IHT) can significantly reduce the value of the estate you leave behind. With careful planning, however, there are effective ways to manage and mitigate this impact, helping to ensure your assets are passed on in the way you intend.
What Is Inheritance Tax?
Inheritance Tax is a tax on the value of your estate when you pass away. This includes your property, savings, investments, and any other assets you own. Currently, the standard IHT rate is 40%, applied to the value of the estate above the available thresholds. These thresholds can vary depending on your circumstances, including whether you’re passing on a home to direct descendants or have made certain types of gifts during your lifetime.
How I Can Help
As an Independent Financial Adviser, I offer tailored advice to help you navigate the complexities of IHT and take proactive steps to protect your estate. Here's how I support you:
1. Understanding Your Estate
I begin with a thorough review of your assets, liabilities, and family circumstances to get a clear picture of your current estate value and any potential IHT liability.
2. Utilising Available Allowances
I help you make full use of the various IHT allowances and exemptions available, including the Nil Rate Band, Residence Nil Rate Band, and annual gifting allowances.
3. Lifetime Gifting Strategies
Gifting assets during your lifetime can significantly reduce your taxable estate. I provide guidance on how and when to gift in a way that aligns with both your IHT strategy and your personal financial needs.
4. Trust Planning
Trusts can be a powerful tool in estate planning. I help you explore whether setting up a trust is suitable for your circumstances, and guide you through the options available to help retain some control over your assets while potentially removing them from your estate for IHT purposes.
5. Investment Planning
Certain types of investments, such as those that qualify for Business Relief, can be exempt from IHT after a qualifying period. I provide advice on how these might fit into your wider financial strategy.
6. Keeping Plans Up to Date
Tax rules change, and so can your personal circumstances. I work with you on an ongoing basis to review and update your estate planning strategy, ensuring it remains effective and aligned with your goals.
A Personalised Approach
No two estates or families are the same. That’s why my approach is always bespoke, built around your unique situation and wishes. Whether you’re planning well in advance or responding to recent changes in your life, I’m here to help you take control and plan with confidence.
* The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
*HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
*Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.
* Trusts and Taxation are not regulated by the Financial Conduct Authority.
