Planning ahead for when you die allows you to set out clearly who should get what from your estate. QualitySolicitors can help you think through your plans and their financial impact. Our aim is to ensure that your loved ones are cared for when you no longer can.
Inheritance and tax planning
In short
Inheritance and tax planning is about legally arranging your affairs so that as much of your estate as possible reaches the people and causes you care about, rather than being lost to Inheritance Tax (IHT). Currently, IHT is charged at 40% on the value of an estate above the £325,000 nil-rate band. Call 08082747557 for a free initial assessment.
Planning ahead lets you set out clearly who should get what from your estate, while making the most of the reliefs and exemptions available. We make a complex area of law and financial planning simple, without losing the technical detail that actually saves you money.
How Inheritance Tax works
- The standard nil-rate band is £325,000 per person — no tax is due on an estate up to this value
- Above that threshold, IHT is charged at 40%
- An additional residence nil-rate band may apply where a main home passes to direct descendants (children or grandchildren), potentially raising your personal threshold
- Married couples and civil partners can typically transfer any unused nil-rate band to the surviving spouse, effectively doubling the threshold for the second death
Strategies we can advise on
- Lifetime gifting — certain gifts fall outside your estate for IHT purposes after seven years (known as Potentially Exempt Transfers), or immediately in some cases
- Trusts — moving assets into trust can reduce the value of your estate for tax purposes while still controlling how and when beneficiaries receive them; see our full guide to trusts
- Business Relief — can significantly reduce or remove IHT on qualifying business assets, relevant if you're a business owner
- Charitable legacies — leaving 10% or more of your estate to charity can reduce the rate of IHT charged on the rest, as well as supporting causes you care about
- Pensions and investments — structuring how these pass on can materially change your IHT position
This applies to homes, investments, business assets and lifetime gifts alike — the right strategy depends entirely on your circumstances.
Want to know how much Inheritance Tax your estate might pay? Call 08082747557 for a free initial assessment.
Where this fits with your will
If your estate is likely to exceed the £325,000 threshold, or you own a business, our Financial Protector will product is built specifically to combine tax planning with your will. If you need more complex trust arrangements as part of your planning, see Protector Plus.
Related Services
- Combine a will with dedicated tax planning Financial Protector will
- Protect assets for children, grandchildren or a vulnerable relative Trusts
- Write or update a will Making a will
- Deal with an estate after a death (probate) Estate administration
- Appoint someone to manage your affairs in future Power of attorney
- Challenge a will, or you think you’ve been left out unfairly Contesting a will or inheritance
- Back to Wills & Probate Wills & Probate
Inheritance Tax FAQs
What is Inheritance Tax (IHT)?
Inheritance Tax is a tax that may be payable on a person's estate after they die. The amount due depends on the value of the estate and any available exemptions, allowances or reliefs.
How much is Inheritance Tax in the UK?
Inheritance Tax is generally charged at 40% on the value of an estate above the available tax-free thresholds. Certain gifts, exemptions and reliefs may reduce the amount payable.
What is the Inheritance Tax threshold?
Most estates benefit from a tax-free allowance known as the nil-rate band. Additional allowances may be available when passing a family home to direct descendants.
Can gifts reduce Inheritance Tax?
Yes. Giving away assets during your lifetime may help reduce the value of your estate for Inheritance Tax purposes, although specific rules and time limits apply.
Does a spouse or civil partner pay Inheritance Tax?
Assets left to a spouse or civil partner are usually exempt from Inheritance Tax, provided certain conditions are met.
What assets are subject to Inheritance Tax?
Inheritance Tax may apply to property, savings, investments, valuable possessions and certain business interests, depending on the circumstances of the estate.
Can I reduce my family's Inheritance Tax liability?
Careful estate planning, including the use of Wills, trusts, lifetime gifting and available tax reliefs, may help minimise a future Inheritance Tax bill.
What is Inheritance Tax planning?
Inheritance Tax planning involves arranging your affairs to help preserve more of your estate for your beneficiaries while remaining compliant with UK tax rules.
Are trusts used for Inheritance Tax planning?
Trusts can form part of an estate planning strategy in some situations. Whether a trust is appropriate will depend on your financial circumstances and objectives.
When should I seek advice on Inheritance Tax planning?
It is often beneficial to seek advice as early as possible, particularly if you own property, have significant savings or investments, run a business, or wish to pass wealth to future generations.
How can an Inheritance Tax solicitor help?
An Inheritance Tax solicitor can advise on tax-efficient estate planning, review your Will, discuss gifting and trust options, and help you structure your affairs to protect your family's future.