Inheritance Tax Planning

Many people leave their estates vulnerable to hefty tax bills upon their death as a result of their failure to minimise the impact of Inheritance Tax. All of your assets up to the value £325,000 are exempt from Inheritance Tax, this is known as the Nil Band Rate. However, beyond this threshold Inheritance Tax is charged at 40% of the remaining value of your assets. Failing to adequately prepare for this can result in depriving your family and loved ones from their full inheritance upon your death. Your estate is made up of your home, any other property you own, any possessions you have, investments, bank accounts and many other things that you may have a share in. At PA Duffy and Company, we advise our clients on a wide range of steps that can be taken to reduce the impact of Inheritance Tax. For example, recent changes to Inheritance Tax in 2017 has made it more beneficial for an estate including a family home to be transferred to children or grandchildren. In some instances, this transfer will be tax free. An important thing to consider is that gifts to charity and to a spouse are exempt from Inheritance Tax. However, it should be noted that whatever you leave to your spouse will inevitably increase the value of their estate and will potentially result in a tax liability upon their death. This will depend on the value of the estate, but legal guidance should be sought before making any such transfer. A key consideration in Inheritance Tax Planning is the effectiveness of your will. A well written will can provide a basis for minimising the amount of Inheritance Tax payable upon your death. Our expert solicitors will advise on a range of will writing methods that can help to achieve this. For example, the inclusion of discretionary trusts can help to significantly reduce the impact of Inheritance Tax on your estate. It is important to continue to review your will as your circumstances change, particularly if you get married or divorced. Other exemptions include agricultural property relief and business property relief. These only apply in limited circumstances and our expert solicitors can advise you if your assets will qualify for exemption. At PA Duffy and Company our goal is ultimately to minimise the impact of Inheritance Tax on your estate and, in turn, maximise the assets that are left to your family and loved ones. Our experienced solicitors will walk you through the necessary steps which may include writing or amending a will to include trusts and gifts. We will also provide guidance on your eligibility for the various exemptions that can be enforced to minimise the Inheritance Tax on your estate.

Make An Enquiry

Call us now on 028 8772 2102 or complete an Online Enquiry and we will soon be in touch.