Inheritance Tax (IHT) Planning

Inheritance tax (IHT) is a 40% tax on Estates above the threshold, currently £325,000 per individual (£650,000 for couples). Without proper planning, your beneficiaries could face a significant tax bill. Our strategies help you reduce IHT liabilities and ensure more of your wealth is passed on to your loved ones.

Key IHT planning strategies:

• Using Nil-Rate Band and Residence Nil-Rate Band – Making full use of IHT-free allowances to protect more of your Estate
• Lifetime Gifting – Taking advantage of tax-free gift allowances, including:
  • Annual gift exemption (£3,000 per year per individual)
  • Small gift exemptions (£250 per recipient per year)
  • Wedding gifts (up to £5,000 for children, £2,500 for grandchildren, and £1,000 for others)
  • Potentially Exempt Transfers (PETs) – Gifting assets more than seven years before death to avoid IHT
• Business & Agricultural Property Relief – Up to 100% IHT relief for qualifying business and agricultural assets.
• Charitable Donations – Leaving at least 10% of your estate to charity can reduce the IHT rate from 40% to 36%.
• Life Insurance for IHT – Taking out a life insurance policy written in trust to cover expected IHT liabilities, ensuring funds are available to pay taxes without depleting the Estate.

We review your Estate and provide a tailored plan to ensure you make the most of IHT allowances while keeping your financial legacy intact.

• Planning for potential long-term care costs and protecting your assets
• Ensuring your wishes are followed if you are unable to make decisions yourself

• Making use of pensions as a tax-efficient way to pass on wealth
• Understanding how pensions are treated under Estate rules and ensuring beneficiaries are nominated correctly
• Maximising the benefits of pension assets within an Estate Plan

• Ensuring a smooth transition of business assets to the next generation or key stakeholders
• Protecting business interests while minimising tax implications
• Reviewing shareholder agreements and key person insurance options

• Setting up trusts to protect assets for future generations
• Ensuring your Estate is distributed in line with your wishes

Trusts are a powerful Estate Planning tool that allow you to protect your wealth, control asset distribution and minimise tax liabilities. We provide expert advice on the different types of trusts available and how they can be used to safeguard your financial legacy.

Types of trusts we advise on:

• Bare Trusts – Assets are held in trust for a beneficiary who gains full access at a specified age. Often used for gifts to children
• Discretionary Trusts – Trustees have control over how and when assets are distributed, offering flexibility and protection for beneficiaries
• Discounted Gift Trusts – Helps reduce inheritance tax while allowing the settlor to receive an income from the trust
• Loan Trusts – Provides tax-efficient wealth transfer while allowing the settlor to retain access to the loan capital

Trusts can be used to:

• Protect assets for children and vulnerable beneficiaries – Ensuring wealth is managed responsibly and not misused
• Mitigate inheritance tax – Reducing the taxable value of your Estate and ensuring more wealth is passed on
• Control how and when beneficiaries receive their inheritance – Avoiding lump sums being distributed at inappropriate times
• Provide for future generations – Ensuring long-term financial security for your family
• Support charities – Leaving a legacy in a tax-efficient way

We work with you to determine the most suitable trust structure for your Estate Planning needs, ensuring that your wealth is protected and your wishes are met.