Inheritance Tax planning (or Estate planning) is a way to make sure that your estate passes on after your death to who you choose, in the most tax-efficient way possible.

Inheritance Tax – what is it?

Your estate is made up of everything you own, including your home, property and savings. After any debts are paid, anything over the basic tax-free allowance of £325,000 could be subject to 40% inheritance tax.  

Losing a loved one is hard enough already, without the prospect of such a steep tax bill. Your family may even have to sell assets, such as the family home, in order to pay the bill.

Where next?

With some forward planning you can help ensure that the people you want to benefit from your estate actually do benefit. 

There are many approaches to reducing your IHT liability, some are more complex than others and some may not be suitable for you, so it is always important to get professional financial advice.

A good place to start

If you have answered “no” or “don’t know” this may be an excellent place to start

If you have answered yes to all of the above that’s fantastic, although there may still more to do as these steps are just the tip of the iceberg

Your adviser will discuss inheritance tax planning and mitigation, and advise on how this can be achieved whilst still achieving your other financial planning objectives. If you would like to learn more about IHT Planning and Estate Planning, please get in touch.