Our areas of expertise

Inheritance Tax Planning

What exactly is Inheritance Tax?

A tax paid by your beneficiaries after you die, on the value of your estate. Currently it's levied on everything you leave over the ‘nil rate band’ (currently £312,000 – 2008/2009).

It includes:

• Your investments and savings.
• Your home and car.
• Your furniture and personal effects.
• The proceeds of your life insurance, unless it is written in trust.

The rate of Inheritance Tax is 40% for everyone. This is equivalent to the highest current rate for income tax. The tax is paid by those that inherit - and is deducted from the estate on death - so Inheritance Tax is relevant whether you stand to gain an inheritance or you plan to leave one.

Changes to IHT madse in 2008 allow a spouse to leave any unused ‘nil rate band’ to their partner. This does not increase the individuals allowance to £600,000 as is commonly thought!

Advice we can offer on how to combat Inheritance Tax:

• Equalising your estate.
• Splitting joint tenancies on Property.
• Use of trusts and will trusts – the most suitable for Inheritance Tax mitigation.
• How to maximise individual Inheritance Tax exemptions.
• How to plan for Nursing home fees Plan Now or you Plan to Pay Inheritance Tax!
• Proper planning can save you tens of thousands of pounds in tax. Money that should be passed to your chosen beneficiaries.

The Financial Services Authority does not regulate taxation and tax advice.

Levels, bases of reliefs from taxation may be subject to change.

Contact details on our contacts page.