Inheritance Tax (IHT) Planning and Family Wealth Transfer

We combine a robust investment management process with financial planning and tax optimisation in order offer a holistic, fully independent wealth management service.

HMRC themselves refer to Inheritance Tax as a “voluntary tax”.  However, given the increase in value of property over recent years, IHT is no longer a tax paid only by those who are extremely well off.  Many will find that their property alone now uses up the bulk of their Nil Rate Band (the value you can leave to your beneficiaries without any IHT liability).

There are various allowances and ways of reducing any liability, but it is often best to start planning this as early as possible.  Normally, gifts of assets in excess of the annual exemptions will need to be made seven years before you die to ensure that they no longer form part of your taxable estate.  This can involve simply giving money or assets to others such as children or placing them into trust.

However, for those who have delayed their planning until later in life, all is not lost.  There are options that can enable you to retain access to your money should you need it to cover unexpected costs or care fees in future but these will also remove the money from your taxable estate in just two years.

Given that any estate left in excess of the nil rate band will be taxable at 40%, even a small IHT liability can lead to a large tax bill on death and most would prefer this money to go to their loved ones rather than the tax man.

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