Inheritance Tax (IHT)

Inheritance Tax (IHT)

Inheritance tax is a tax imposed on the value of an individual’s estate upon their death.

It is applicable to UK residents and non-residents who own assets in the UK. Inheritance tax aims to ensure the equitable distribution of wealth and supports public services. Understanding the basics of inheritance tax is crucial for effective planning.

In the UK, inheritance tax is applicable when the total value of an individual’s estate exceeds the current threshold. As of the current tax year, the threshold stands at ¬£325,000 for individuals and ¬£650,000 for married couples or civil partners. Assets exceeding the threshold are subject to a tax rate of 40%. It is important to be aware of these thresholds and rates to determine your potential tax liability.

 Importance of Inheritance Tax Planning

Proactive inheritance tax planning allows you to protect your wealth and ensure a smooth transfer of assets to your loved ones.

This section will focus on the following aspects:

Mitigating Tax Liability

Through strategic planning, you can legally minimize your inheritance tax liability. Our advisors will help you explore various options such as gifting, trusts, and tax-efficient investments, tailored to your specific circumstances and financial goals.

Preserving Family Wealth

Effective inheritance tax planning ensures that your hard-earned wealth is preserved for future generations. We will guide you in creating a comprehensive plan that takes into account your family’s needs, aspirations, and the impact of inheritance tax on their inheritance.

Avoiding Unintended Consequences

Without proper planning, your loved ones may face unnecessary financial burdens or disputes after your passing. Inheritance tax planning allows you to structure your estate efficiently, reducing the risk of potential disputes and ensuring your wishes are carried out smoothly.

Our Inheritance Tax Planning Services

At Heritage, our experienced advisors are equipped with the knowledge and expertise to assist you in effective inheritance tax planning.

We offer the following services:

Personalized Inheritance Tax Assessments

Our advisors will conduct a thorough assessment of your estate and financial situation to determine your potential inheritance tax liability. This assessment forms the basis of developing a tailored strategy to protect your wealth.

Tax-Efficient Investment Solutions

We offer a range of tax-efficient investment options that can help reduce your inheritance tax liability. Our advisors will recommend investment vehicles that align with your risk tolerance, financial objectives, and the goal of maximizing inheritance tax savings.

Trust Planning

Trusts can be effective tools for inheritance tax planning. Our advisors will guide you through the process of establishing and managing trusts to protect your assets, minimize inheritance tax liability, and ensure a smooth transfer of wealth to your chosen beneficiaries.

Regular Review and Updating

Inheritance tax planning is an ongoing process that should be reviewed regularly to account for changes in legislation, personal circumstances, and financial goals. Our team will conduct periodic reviews to ensure your inheritance tax strategy remains effective and up-to-date.

Contact our expert advisors today to begin the journey toward protecting your wealth and securing your family’s financial future.

Scroll to Top