Reduce your estates tax bill
Avoiding inheritance tax, through inheritance tax planning

If your estate is large in size, inheritance tax could be payable after you pass away. There are ways of reducing your estates tax bill and avoiding inheritance tax, effectively increasing the amount passed on to your heirs, through inheritance planning. Here are some considerations:

  • The giving of gifts,
  • Leave your estate to your spouse,
  • Use property allowances,
  • Consider a ‘deed of variation’,
  • Leave money to a Charity,
  • Equity release and a life insurance policy are also other options. Advice should be sought through a specialist and we recommend you consult with an independent financial advisor.

For amounts given away in excess of £325,000 in the seven years prior to your death, the beneficiaries of these gifts will be subject to inheritance tax charges. The ‘seven year’ rule would be applied.

For any of these matters, including an inheritance tax specialist, and other matters relating to estate planning, please feel free to contact us for a free no obligation consultation

Get in touch today To get a FREE consultation

Join the hundreds of People our Services have protected

Mrs Adams had co-habited with her partner for over 20 years; she had also put money into the house for home improvements in the past. He died suddenly without a will or children and when Mrs Adams attended his funeral, his sisters told her that by law they would inherit the house. Mrs Adams was extremely worried and following advise from two separate solicitors firms, she had given up hope of retaining her home. She then approached Perfect Wills & Estate Planners, who advised that under the Inheritance (Provision for Family and Independence) Act 1975 she could make a claim and probably retain her home in which she had resided for many years. Perfect Wills through our Associates secured the house in her name and negotiated a very fair and affordable settlement for the two sisters.

Mrs Adams – Probate & Contentious Probate Matters

Why choose Perfect Wills & Estate Planners?

Knowledge

We keep ourselves informed on all aspects of probate, estate planning and asset protection to ensure we can provide the right solution for you.

Capability

We create solutions that are right for you by only employing the best and continually developing our talent.

Customer

We do business honestly and transparently, placing great customer service at our core and we’re always striving to give you greater value.

Considerations in more detail:

The giving of gifts, exempt gifts allow you to give away £3,000 worth of gifts each tax year (6 April to 5 April), the annual exemption, (a gift can be money, property or possessions). Small gifts up to the value of £250 per person can be given during the tax year, assuming you have not used another exemption on the same person.

Leave your estate to your spouse, if your spouse passes away, they will inherit your unused personal Inheritance Tax (IHT) allowance, allowing them to pass on up to £325,000 more as part of the main IHT allowance. The setting up of a Trust can assist with this.

There is also the residence nil rate band (RNRB) to be considered, increasing the threshold, but likewise, lifetime gifts made within seven years of death could attract an IHT charge if the estate is large in size.

Use property allowances, if you are leaving your estate to children or grandchildren, the new property allowances can let you leave more of your home before tax is due. The setting up of a Trust can assist with this.

Consider a ‘deed of variation’, this allows your heirs to alter your Will after death so that, for example, part of the inheritance is re-directed to someone else. They can draw up a deed of variation within two years of your death, however all affected beneficiaries under the Will must agree to the variation – not quite so simple.

Leave money to a Charity, any money you leave to a UK registered Charity would be free from inheritance tax.  There can also be tax advantages on the inheritance tax rate applied to your estate, these are subject to ‘terms’.

Equity release and a life insurance policy are also other options. Advice should be sought through a specialist and we recommend you consult with an independent financial advisor.

Don’t delay, protect your future today Get in touch for a FREE consultation