Inheritance tax and estate planning

Tax is often the last thing that is considered by families when a relative dies. However, what you can be sure of is that it will be among the first things that your family will have to pay from your estate.

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How much tax is to be paid from your estate is entirely dependent on you – and the choices and plans you make now.

You should also be prepared and plan ahead for your future as we are all now living longer.

The latest research published by the Office of National Statistics suggests that if you are 65 today, there is a 70-80% probability that you can expect to live to your 80s, and around a 40% probability that you will live to your 90s, which is great news for us all.

However, with lifestyle costs, assisted living costs and care home fees on the rise, coupled with the applicable taxes due in life and on death, you may find that the value of the assets in your estate could be significantly reduced – if you don’t plan ahead.

Our tax and wealth management advisors will talk you through the simple steps you can take now to plan for what is to come. They will help you to structure your estate and financial arrangements so that your assets can pass to your beneficiaries tax efficiently.

Dealing with inheritance tax, capital gains tax and the potential taxes that may have an impact on your beneficiaries is not overly complicated. It just needs input and planning advice from someone who does it every day.


We can help you with a range of issues

Inheritance tax & estate planning – if your estate is valued above £325,000 you may be liable to pay 40% of its value to HMRC if you don’t plan ahead. If your estate is under £325,000 the chargeable assets are charged at the nil rate i.e. no tax is payable. The unused portion of a pre-deceased spouses allowance passes to the surviving spouse on death. This could result in the surviving spouse having a taxable allowance of £650,000.

Capital gains tax – if you are disposing of an asset e.g. property, share of a company, stocks & shares investments, you should ensure that all the available tax reliefs, allowances and exemptions are claimed and you dispose of the asset at time which is most financially beneficial to you.TPL 2020 21

Establishing trusts to reduce your tax liabilities. You can choose to giveaway assets to your chosen beneficiaries now. This can help you to reduce your current, and on death, tax liabilities. By placing certain assets in trust this in effect places them ‘outside your estate’ i.e. by placing assets in trust, they cannot then be used to calculate your inheritance tax bill, or taken into consideration when calculating any assisted living or care home costs your Local Authority may require you to pay in future for your care.

Marriage and transferring money between spouses

Agricultural Property Relief (APR) and Business Property Relief (BPR)

Our Tax Planning for Life guide provides a host of of tax and financial planning opportunities for individuals, couples, families and company directors. It also provides a few simple steps that you can take now so that you do not pay a penny more in tax than HMRC is due in this tax year. Download the guide >click here

If you think your estate may be liable for inheritance tax or you are concerned about other potential tax liabilities that you may create in life and on death, it is important that you plan ahead so that your and your beneficiaries’ tax liabilities are not greater than they should be.