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.
Who inherits if there is no will? It is estimated that as many as 30 million people across the UK do not have a will. Losing somebody close to you is a difficult enough time for anybody, but if that person dies without leaving a will, it can cause additional distress...
What is inheritance tax? Inheritance tax is a tax that sometimes has to be paid on a person's estate after they have died. Because talking about death is uncomfortable for many of us we don’t tend to dwell on it, but have you thought about what happens to your assets...
Cartridges Law is pleased to announce that we will be supporting Age UK Exeter with a special fundraising initiative. We have been advocates of the charity over many years and see first-hand the vital work it does for older people. As with many organisations, Age UK...
We are currently facing a global pandemic which has made people think about their family's long term health and financial security - even members of our own team have suddenly thought "oh yes, a will might be a good idea!" Many people are understandably concerned and...