Inheritance tax

Inheritance tax planning has been described as an “optional tax”. With good planning and sound inheritance tax advice, its impact on family wealth can be significantly reduced and, in some cases, negated completely.

Whilst people are often conscious of tax paid during a lifetime, many do not consider the further tax when they die on wealth accumulated.

Inheritance Tax (IHT) potentially affects all individuals with a net estate valued at more than £325,000 when they die. Tax is generally payable by the executors of an estate before anything can be distributed under the will, and can severely erode family wealth.

Effective inheritance tax planning involves the transfer of assets to beneficiaries directly or into a trust structure, to place those assets outside an individual’s estate at a time when the individual concerned is likely to outlive the date of gift by at least seven years. Inheritance tax savings can still be achieved in other situations and numerous reliefs and exemptions may be available with careful advice and planning.

To assess the scope for an individual’s inheritance tax planning options, it is useful to have some background information to an individual’s family situation and personal objectives.

If you would like further inheritance tax advice or support with inheritance tax planning, please download and complete the following form: Inheritance Tax Planning

The objective of the questionnaire is to establish the current value of an estate that may become subject to an inheritance tax on death. It is important to establish the current market value of all assets currently in someone’s estate and, in the case of a married taxpayer, how assets are owned between themselves and their spouse/civil partner.