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Finding you the right Inheritance Tax Planner

The purpose of our site is to find you the right Inheritance Tax Advisor to match your needs, ensuring every aspect of your taxes are managed as effectively as possible. The right advisor can save thousands on taxes on your estate.

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We have teamed up with some of the UK’s best Inheritance Tax Planners to ensure your estates tax bill is a low as possible. They will be able to offer advice on all aspects of financial planning, and help you through the process from start to finish.

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Based on your requirements a specialist advisor will be in touch

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What Is Inheritance Tax (IHT)?

As the name suggests, inheritance tax (IHT) is a tax on your wealth that your beneficiaries must pay to HMRC in the event of your death. This tax applies to all your assets, including property, money, investments, insurance policies, and possessions, and it is chargeable at a rate of 40 per cent.

You must pay IHT to HMRC within six months of acquiring the estate. The executor of the will should arrange this, using funds from the estate if possible, before distributing the remaining assets to the beneficiaries. However, this is not always possible. If there is not sufficient cash to settle the inheritance tax bill, you may need to take out a bridging loan or secure the outstanding amount against property within the estate; this is where a financial advisor is essential.

What is Inheritance Tax Planning?

If there is one thing that the pandemic has taught us, it is that we need to plan for the future, particularly when it comes to our estates. And this is why Inheritance Tax Planning is so important. But what is inheritance tax and how do we limit the amount our loved ones have to pay? In this complete guide, we’ll explain everything you need to know.

 

What can a Wealth Manager do for you?

There are ways to legally avoid paying vast amounts to the taxman if your estate is worth more than the £325,000 threshold, or you would like to leave it to your children and grandchildren, and it all starts with careful inheritance tax planning. With the help of your financial advisor, you can reduce the amount your beneficiaries will have to pay to HMRC by:



Gifting
You can give away £3,000 per year, and an additional £250 per year to everyone you know without paying inheritance tax. However, gifting larger amounts will be subject to IHT, unless you give them more than seven years before your death.

Wedding Presents
You can gift £5,000 to your children, £2,500 to your grandchildren, and £1,000 to anyone else as a wedding present, without it being subject to inheritance tax.

Leaving Your Assets To Charity
If you decide to bequeath your estate to your favourite charity or political party, you can do so inheritance tax-free, but you must leave a will. Inheritance tax planning can help you pass on as much as your wealth as possible to future generations, so speak to your financial advisor today.

Inheritance Tax Thresholds for 2020 and 2021

Tax is always confusing, and inheritance tax is no different. Certain thresholds apply, depending on how much you leave and who you leave it to, as we’ll explain below:

There is no inheritance tax payable on the first £325,000 of any estate. This is known as the ‘nil-rate band’.

Anything over £325,000 is taxed at a rate of 40% unless you leave it to a spouse, civil partner, or a charity, in which case, the entire estate is exempt from inheritance tax.

If you are leaving your estate to your children or grandchildren, and it includes your family home, it will fall within the ‘main residence nil rate band’ and, there will be no inheritance tax to pay on the first £500,000 of the estate. Everything above this amount is taxable at 40 per cent, but this rule only applies to estates worth £2m or less.

FAQs

You'll find all the answers to your Inheritance Tax questions below…

What is Inheritance Tax (IHT)?
In the UK, inheritance tax is a tax charged by HMRC on the estate of someone who has passed away. It applies to property, cash, investments, life insurance policies, and any other assets that exceed the tax-free threshold of £325,000. This amount increases to £500,000 if you are leaving your main-residence to your children or grandchildren.
How much is Inheritance Tax?
You can expect to pay up to 40 per cent tax on assets liable to IHT. As an example, if the value of your estate is £500,000, you’ll pay 40% on £175,000 (£500,000 minus the £325,000 tax-free amount), equating to £70,000 in inheritance tax. If you leave at least 10 per cent of your estate to a charity, you can lower your inheritance tax rate to 36%.
Who has to pay Inheritance Tax?
Beneficiaries of estates valued at £325,000 and more must pay inheritance tax to HMRC within six months of the person’s death. After that time, it will start to accrue interest. You are exempt from paying IHT if:

1. Your estate (including savings, property, and assets) has a net worth of less than £325,000
2. You leave your entire estate to your spouse, civil partner, or a charity
3. You put your assets into a trust for your heirs
What is Inheritance Tax Planning?
Inheritance tax planning, also known as estate planning, is a financial advisory service designed to help beneficiaries legally avoid paying 40 per cent tax on any estate they inherit. With the help of a financial advisor, you can reduce your tax liabilities by gifting a certain amount of your estate before it becomes liable for IHT, by putting any savings into a pension plan, and by creating trust accounts for your heirs. You can also take out a life insurance policy to cover any inheritance tax due when you die.

It’s all about planning for the future to ensure that your loved ones can hold on to everything that you have worked for, and in turn, bequeath it to their own families in the future.
How Much Can I Save With Inheritance Tax Planning?
With inheritance tax planning, you can increase your tax-free threshold to up to £1,000,000, and in some cases, avoid paying any IHT at all, without breaking any laws.
Do I Need A Will?
One of the best ways to plan for the financial security of your loved ones is with a will. It will not only provide the executor of your estate with the information they need to pay any inheritance tax outstanding, but it will help them to distribute your property and assets as you wish. Speak to your financial advisor or solicitor for advice.
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