Our Inheritance Tax services
Inheritance Tax advice
Here at AWH our team are experts on Inheritance Tax, and are here ready to give you the advice you need. We understand that it can be confusing, which is why we’re here to lend a helping hand.
In the same way that not every estate will have to pay for Probate, not everyone will be required to pay Inheritance Tax. However, unlike the Probate threshold, the Inheritance Tax threshold is set by the government.
It is important to note that if your estate is worth over £325,000, your family will only pay Inheritance Tax on the amount that it is over. So, if your estate is worth £700,000, your family will owe tax on £375,000. If you choose not to leave any assets to charity, the amount of inheritance tax to be paid will be £150,000. This is quite a hefty amount of the estate to be taken in tax, so where possible it is a good idea to do what you can to reduce the amount of tax your family will pay, or help them to completely avoid it if you can.
One way of doing this is to put your assets into a Trust fund. There are a variety of different types of Trust funds, each with their own benefits and each suiting people differently depending on their circumstances.
We understand that Inheritance Tax can be tricky to get your head around, especially if your circumstances are particularly complex. Our specialist solicitors have the knowledge and expertise necessary to help you reduce the amount of Inheritance Tax your family will pay after you’re gone, and support you in doing so.
Inheritance Tax on property
We know that Inheritance Tax and property can be difficult to understand, however you don’t need to worry. We’re here to explain everything you need to know and will support you when you need it.
When it comes to Inheritance Tax on property, the rules have changed quite recently. The £325,000 threshold still applies, but thanks to the ‘main residence Nil-Rate Band’, if you pass your home onto a direct descendant you will benefit from an additional £150,000 in tax free allowance. A direct descendant is considered to be a child or a grandchild, but the rules on this are more complex than explained here.
If you are married or in a civil partnership, it is also possible to apply any unused allowance your partner leaves behind to your own allowance. This means you can pass on property worth more without paying more tax.
Inheritance Tax when there’s property left as part of someone’s estate can become tricky to understand, especially with the new rates and the introduction of the Nil-Rate Band. If you’re unsure about whether you need to pay it, or if you want to reduce the amount your family will have to pay when you pass away, we are here to help you.
Inheritance Tax threshold
As we’ve mentioned, the Inheritance Tax threshold is £325,000. Put simply this means that if your estate is worth more than this when you pass away, your family will have to pay tax on the difference between this threshold and your estate’s value.
It is now possible to receive additional tax-free allowances on top of this threshold too. Whether you are eligible for more allowance will depend on whether you own property, are married or in a civil partnership, and/or have descendants.
If you need help valuing a loved one’s estate in order to establish if you need to pay Inheritance Tax, our team can help you. We’ll be by your side, assisting in any way we can so that the process runs as smoothly as possible. We want to help you and your family heal and grieve without the stress.
Inheritance Tax ceiling
There is currently no Inheritance Tax ceiling, meaning there is no higher threshold at which Inheritance Tax stops being charged. However, there is a limit for the main residence nil-rate band allowance. For the 2019-2020 tax year, the highest value your estate can be worth is £2 million before the Nil-Rate Band will gradually reduce, or taper away even if a home is left to direct descendants.
Inheritance Tax planning
We understand that thinking about a time after your death can feel distressing, but in order to keep your family financially secure it is important to carry out some Inheritance Tax planning. Our solicitors are here to help you with your Inheritance Tax planning, ensuring it is done in a legal, but easy-to-understand way.
We suggest carrying out the following steps in order to best protect your family from a heavy tax deduction from your estate after you’re gone:
- Make sure you have a legal Will that deals with your assets in the most beneficial way
- Keep your Will up to date
- Learn about possible reliefs and exemptions from Inheritance Tax that apply to you and your family – for example the nil rate band
- Consider ‘gifting’ parts of your estate to people now, rather than waiting until you pass away – this can help completely avoid Inheritance Tax if you then survive for another seven years
- Consider placing your assets in a Trust so as to control and manage them both before you pass and afterwards too
With the right legal advice and careful planning, you may be able to reduce the amount of tax your loved ones will be required to pay on your estate after your death.
It can be a complex process, but once all your affairs are in order you can rest easy knowing that your family are protected in the way that’s best for them. We can help you write your Will, transfer assets into a Trust, and can let you know about any exemptions from Inheritance Tax that will benefit you. With us by your side, your Inheritance Tax planning will be simple and stress-free.
Inheritance Tax and Trusts
It is possible to reduce or eradicate the amount of Inheritance Tax that your family has to pay after you’ve gone by setting up a Trust and transferring your assets into it. However, there are only certain types of Trusts that mean they can completely avoid paying Inheritance Tax. We can help you set up a Trust that suits you, and will be on hand to give you support and guidance throughout the process.
When you set up a Trust it is important to set it up properly so as to avoid confusion and issues arising further down the line. Our Trusts and Inheritance Tax experts can help you protect and manage your assets and potentially save your family lots in Inheritance Tax.
Read more about Trusts
About our Inheritance Tax solicitors
We know that Inheritance Tax rules can be difficult to understand, and it’s tricky to work out whether your family will be obliged to pay any on your estate after you’re gone. That’s where out Inheritance Tax solicitors can help you.
At AWH we understand that every family is different, so we make sure that we get to know you and your needs before we help you. When you come to us for help with Inheritance Tax planning, you can rest assured that the process will run smoothly. Our aim is to make you feel at ease and help you achieve what is best for you and your family with minimal stress.
- Can I avoid paying Inheritance Tax in the UK?
In the UK it is possible to avoid paying Inheritance Tax by either:
- Having an estate worth under £325,000, including all money, property and possessions
- Setting up certain types of Trust funds
- Leaving your property to your spouse or civil partner in your Will
There are also ways to reduce the amount of Inheritance Tax you have to pay too.
- How to avoid Inheritance Tax with a Trust?
If you transfer your assets into a certain type of Trust you essentially give up your ownership of the assets and can therefore avoid Inheritance Tax.
You should consult a legal professional to help you establish what kind of Trust will be most beneficial if you want to avoid or reduce the amount of Inheritance Tax payable on your estate after you pass away.
- How to reduce Inheritance Tax?
There are many ways in which you can reduce the amount of Inheritance Tax payable on your assets after you're gone, including:
- Gifting parts of your estate to loved ones
- Setting up a trust fund and transferring your assets into this
- Leaving your property to children or grandchildren, or your spouse or civil partner in your will
- Where can I get advice on Inheritance Tax?
To get advice on Inheritance Tax seek the services of a specialist Inheritance Tax solicitor. They can advise you on what your estate is worth, how much Inheritance Tax your family will have to pay and how you could reduce this amount.
Starting the process couldn’t be more simple!
- Contact us Get in touch however suits you best and arrange a consulation with one of our solicitors
- Meet an expert You’ll meet the expert solicitor assigned to your case and discuss all the necessary details
- Authorise Once we’ve got all the details of your case and you’re happy to proceed, just give us the go-ahead
- We get to work It’s time for us to get to work! We’ll set up your file on our system and get to work right away
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