Inheritance Tax and Estate Planning

We can provide advice with regards to Inheritance Tax and Estate Planning in order to minimise the amount of inheritance tax payable on your estate thereby benefitting your family and loved ones as much as possible.

We can advise you about the current levels of Inheritance Tax and assist you in calculating the Inheritance Tax liability your estate may face. We can then provide advice on the various ways of mitigating the amount of Inheritance Tax payable.

Examples of reducing the value of your estate for Inheritance Tax Planning during your lifetime include such things as:

• Gifts Made Outright (with no conditions attached) during your lifetime
• Wedding gifts of up to £5,000 for a child
• Wedding gifts of up to £2,500 for a grandchild
• Wedding gifts of up to £1,000 to anyone else getting married
• Payments for maintenance of a spouse, ex-spouse, dependent relative, child under 18 or child in full time education
• Gifts up to the value of £3,000 in any one tax year plus any unused balance of £3,000 from the previous tax year.
• Gifts in any tax year up to a total of £250 each to any number of individuals provided no individual receives more than £250 in any tax year.
• Regular gifts out of income

Potentially Exempt Transfers made during your lifetime

These are outright gifts that are not covered by the above exemptions. They can be for any sum of money or be comprised of property with any value. The key requirement is that the gifts are made more than 3 years before an individual dies taper relief can be claimed which will reduce the amount of Inheritance Tax payable. . The gift will only be fully exempt if it is made at least 7 years before death.

Gifts to Charity - These are exempt from Inheritance Tax.

Business Property Relief (BPR)and Agricultural Property Relief (APR) - If you have a Business or Agricultural Land that benefits from BPR or APR then these may qualify for 100% or 50% Inheritance Tax Relief. If they do benefit from such relief then it is a good idea to make use of such exemption by gifting them to someone other than your spouse.

Lifetime Trusts - Recent changes to the Law having made Lifetime Trust not as attractive for Inheritance Tax Planning but they may still be of some benefit.