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