Inheritance Tax Planning

Protect what matters most

Inheritance tax applies to around 30,000 estates per year, but careful planning can help to minimise your tax obligations. There are a number of methods that can be used to help reduce the amount of inheritance tax your family will have to pay such as gifting, setting up trusts and taking advantage of tax allowances and reliefs.

What is inheritance tax?

Inheritance tax is a one-off tax which may be paid on your money, possessions and your share of any property when you die. Tax is only paid on estates over £325k and it is charged at 40%.

This reduces how much value will ultimately pass to your beneficiaries (the people you want to leave your money and assets to after you’re gone). There are rules and exemptions to how inheritance tax is calculated which is why speaking to a solicitor will help minimise the amount your loved ones will pay after your death.

When do you pay inheritance tax?

Everybody in the UK whose estate exceeds the £325,000 threshold is potentially liable for inheritance tax when they die. Inheritance tax must be paid within six months of your dying, with interest charged on late payments.

There is the possibility for payment by instalments on certain assets, such as property, that may need to be sold to cover the amount due.
It must also be paid before any beneficiaries of your estate can receive the assets left to them. This is to ensure the funds are available to pay the correct amount of inheritance tax.

What to do about Inheritance Tax

Create a will

Write a will and ensure it properly expresses what you wish to happen to your estate when you’re gone. We at David Allen can help you plan it correctly to ensure your loved ones are provided for through our Will Writing Service.

Considering giving your family gifts

You can reduce the total value of your estate by giving your family financial gifts while you’re still alive. Gifting is a tax-efficient way of creating an investment fund for your beneficiaries so that those you care about most are well-looked after. You’ll also have the benefit of seeing them cared for whilst you are still alive.

Speak to an impartial legal adviser about the best ways to minimise tax liability for those you care about most.

Our Inheritance Tax Planning Services

Managing tax planning can be confusing but don’t worry, our team are here to support you. Our financial advisers and tax consultants can work with you to help you organise your estate in a way that will ensure your beneficiaries are well cared for in the event of you passing. A full review of your assets and estate can mean that planning is put in place as early as possible to ensure those you leave behind receive the assets due with minimal tax obligations.

Get in touch with one of our skilled financial planners to understand your potential tax liability and they can help you take the most appropriate steps to deal with it effectively and make sure those you love most are looked after in your absence.