Expert Inheritance Tax planning & estate planning advice

Estate planning, or IHT planning, is essential to ensure your estate passes on to your family, friends and other beneficiaries according to your wishes and in the most tax-efficient way possible. Our inheritance financial advisers provide clear, practical Inheritance Tax advice tailored to your personal and family circumstances. Effective Inheritance Tax planning advice from experienced Inheritance Tax specialists is a key part of managing your wealth and preserving it for future generations.

What’s included in your estate?

What is your estate?

When we talk about an ‘estate’, we’re referring to everything a person owns at the time of their death. It’s essentially a full snapshot of their financial and estate planning to position at that point in time.

This includes several key categories:

• Property, such as homes, land, or second properties
• Financial assets, including bank accounts, savings, stocks, and other investments
• Personal belongings, like cars, artwork, jewellery, and any other valuable items
• Business interests, if they owned part or all of a business, that value is included too

So, the estate is the total of all assets owned. But it’s important to note that liabilities are subtracted. That means things like outstanding mortgages, loans, credit card balances, or other debts are taken off the total.

How we helped a retired executive secure his family’s financial future

How we helped a retired executive secure his family’s financial future

Inheritance Tax (IHT)

This is what your beneficiaries may have to pay if your estate is worth more than the threshold, which is called the nil-rate band – currently £325,000. IHT is charged if the estate is above the nil-rate band.

• Probate and executor duties
  Probate is the legal right to manage the estate of someone after they die. The executor, often guided by a solicitor, will ensure the valid will is followed and debts like IHT are paid.
• Residential nil rate band explained
  This is an additional allowance – currently up to £175,000, which applies when leaving a main residence to direct descendants like children or grandchildren.
• Gifts and trusts in estate planning
  Gifts made more than 7 years before death are IHT-exempt. Properly set up trusts allow for the bequest of assets while maintaining asset protection and control, particularly for vulnerable beneficiaries.

• Power of attorney
  A power of attorney is a key document that lets someone you trust make financial or health decisions on your behalf if you’re no longer able to make your own decisions.
• Equity release
  In some cases, you may consider equity release to unlock the value of your home while still living there. This could fund your retirement or help you gift money earlier to reduce your taxable estate.

When is Inheritance Tax paid? Funeral costs, property & payment options

Inheritance Tax must be paid within 6 months of the death, and interest is charged on late payments. The tax must be paid before the beneficiaries receive the assets, which can present a bit of a problem.

There are a few solutions for this, though:

• If there is enough cash in the estate to settle the Inheritance Tax bill, the executor of the will can make a payment from the estate directly to HMRC.
• If there isn’t enough cash, a loan can be arranged, and HMRC can be paid with this money. The loan can then be repaid when the estate is released.
• If some of the estate is property, IHT can be paid off in instalments over as many as 10 years.

Instructing professional estate financial planning will help you manage your liabilities and deadlines in a tax-efficient way, including costs related to the funeral and estate management.

Why use our estate planning services?

Effective Inheritance Tax planning advice is a key part of managing your wealth and preserving it for future generations. We provide tailored estate planning and taxation solutions designed to mitigate your IHT liability while aligning with your broader financial goals.

There are several strategies available to reduce or eliminate an IHT bill, including the use of relief, gifts and allowances permissible by HMRC. However, to be effective, these strategies must be carefully structured and fully compliant with HMRC rules.

For example, for an outright gift to be exempt from IHT it needs to be given 7 years before death makes timing and planning critical. Without careful consideration, you could risk compromising your own financial security in later life.

IHT planning is a complex area of financial planning; that’s why IHT planning is best approached with expert guidance. Your IHT wealth management adviser will discuss mitigation and advise on how this can be achieved whilst still meeting your other financial planning objectives.