Inheritance Tax and Estate Planning

Estate planning will help you to decide what you want to happen to your estate and ensure that your assets will be arranged in the most tax efficient way on your death. There are many benefits to taking advice from an estate planning lawyer and considering your options, including ways to reduce inheritance tax.

What is inheritance tax?

Inheritance tax is the tax which is paid on an estate after a person has died and is sometimes called death duty. An estate is made up of someone’s personal possessions, property and money.

Can I avoid or reduce inheritance tax?

There’s normally no inheritance tax payable if the value of your estate is below the threshold of £325,000 or you leave everything above the threshold to a spouse, civil partner or charity.

Our estate planning lawyers can provide advice on a range of options that you might consider to reduce inheritance tax liability:

  • Potentially Exempt Transfers – these are gifts you make while you are alive and will be exempt from inheritance tax as long as you survive seven years after the gift was made.
  • Annual Gift Allowance – these are assets or cash up to a total value of £3000 in each tax year which can be made without incurring inheritance tax.
  • Charitable Gifts – gifts to charity are exempt from inheritance tax. Additionally, if you pass 10% or more of your estate to charity, you can reduce inheritance tax due on the rest of your estate from 40% to 36%.
  • Discretionary Trust – money transferred into a Discretionary Trust is exempt from inheritance tax, up to the current allowance of £325,000, although there are some other tax implications from this course of action.

Estate planning can involve a number of complicated areas of law and we would always recommend seeking advice from an expert. We offer a free initial consultation with an estate planning lawyer to discuss your needs and the options to reduce inheritance tax.

If you appoint us, a named estate planning lawyer will deal with your case from start to finish, and a member of the team will always be available to speak to on a day-to-day basis.

Contact us for a quote or to book your free consultation meeting.

The Team
Jenna Street
Jenna Street

Legal Assistant

Karyna Squibb
Karyna Squibb

Associate Legal Executive and Head of Private Client

Ros Davies
Ros Davies

Private Client Practitioner

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