Inheritance Tax Planning

In the event of your death, your assets are subject to Inheritance Tax (IHT) which is charged at 40%. This is deducted from your estate before any of your beneficiaries inherit. However, there are a number of allowances, exemptions and reliefs which could be utilised to minimise or remove completely the IHT payable.

Therefore, it is vital that you review your affairs as early as possible and take the recommended steps to mitigate a potentially substantial and unnecessary inheritance tax bill. This is generally referred to as ‘succession planning’ or ‘inheritance tax planning’

Succession Planning

Succession Planning should include the consideration of a wide range of actions:

Contact us today or fill in our form and we will call you back.

Inheritance Tax Planning FAQ

What happens to my pension when I die?

Advice For Attorneys & Guardians

Your pension is an asset which will normally fall outwith your estate on death. Who receives your pension is dependent on the type of pension and also whether you have made a Nomination in respect of what happened to your pension on death. If you have not completed a Nomination then the pension Trustees usually have discretion to award your pension to a dependent person, normally your spouse. If you would like to leave your pension to someone other than your spouse, such as children or grandchildren, then you will need to specifically include this in a Nomination.

If you would like assistance with reviewing your pension policy and current Nomination documents please contact us.

Can I protect my assets from nursing or care home fees or put in house into trust to avoid them?

Setting up Powers of Attorney

You cannot deliberatively deprive yourself of assets for the purpose of avoiding paying care costs. The local authority has the power to look back as far as they like into a person’s financial history to see whether they have deprived themselves of assets for this purpose. If they discover that this has occurred, the local authority has the ability to recover the assets from those who received them. There is no time limit on the local authority’s historical search powers.

This does not mean that there are no options available to minimise the exposure of assets to care costs. Planning for protecting assets from care costs is a complex matter and should only be carried out alongside receiving professional advice. If you would like to discuss the possible options available for planning then please contact us.

What can I gift to my children?

gifting and inheritance

Lifetime gifting to children, and other individuals, is a purely subjective decision to be based on your own assets and personal circumstances. There are various gifting exemptions and rules which can be found on the government’s website page relating to Inheritance Tax.

If you would like to discuss the possibility of gifting assets we can provide estate planning advice tailored specifically to your particular situation.

Contact us today

Related Posts

Do I need a Living Will?

Do I need a Living Will?

With the Covid-19 pandemic more people are asking themselves if they need a Living Will (also known as an Advance Decision or Advance Directive). We look at why you may ...

How do I make a Will if I am blind?

How do I make a Will if I am blind?

Following World Braille Day on 4 January 2020, we consider what you can do if you are unable to see or write in order to ensure you create a legally ...

Fertility Week 2020: Should I have a Will when accessing fertility treatment?

Fertility Week 2020: Should I have a Will when accessing fertility treatment?

To celebrate Fertility Week 2020 we are joined by our Family Law colleagues to look at a recent case which found its way into the Scottish Courts involving the use ...

A Grandparent’s guide to gifting

A Grandparent’s guide to gifting

Katie Coates provides an overview of the gifting allowances for Inheritance Tax which grandparents (and other individuals) can utilise to make smaller gifts and which will not have an impact ...