The Inheritance Tax Planning Solicitors at PSR Solicitors have many years of experience in advising people about how to protect what they have accumulated in life and how they and their families can reap the full benefit from it in the future by minimising the impact of inheritance tax on your Estate.
Inheritance tax (IHT) is the tax levied on the money, property and possessions in a person’s Estate when they pass away.
Put simply, your Estate will owe 40% on anything above the £325,000 threshold.
In the 2020/21 tax year, there is a tax free allowance on Estates valued at up to £325,000 plus the new Resident’s Nil Rate band (if applicable) of £175,000 giving a potential total allowance of £500,000 per person.
Therefore, if you are married or in a civil partnership you can potentially leave an Estate up to the combined value of £1,000,000 tax-free allowance.
If the value of your Estate is likely to have reached these thresholds by the time you pass them on to your beneficiaries, there are several things you can do now to reduce the future inheritance tax liability, and ensure that your beneficiaries receive the maximum amount possible.
If you would like to discuss any aspects of wealth protection, succession planning or inheritance tax considerations, call now for a no obligation chat about your situation with an experienced Inheritance Tax Solicitor.
Inheritance tax planning is the process of preparing for the future by understanding your inheritance tax position in advance, exploring the exemptions available to you, and taking action to minimise the tax on your Estate. Failure to plan effectively can leave a significant, and unnecessary dent in your legacy.
Depending on your personal circumstances, inheritance tax planning could involve a mix of:
If you think your Estate might have to pay Inheritance Tax, then there are some simple measures you can take to reduce the amount payable. Like most things, Inheritance Tax benefits from early planning. The sooner you think about it, the better.
If the value of your Estate is below £325,000 (including the value of your main residence, your savings, and what would be left from your pension), you should not have to pay any inheritance tax.
There is also no inheritance tax to pay on assets left to a spouse or civil partner.
If the value of your Estate is higher than the nil-rate threshold of £325,000 you may wish to seek advice from a specialist tax planning solicitor.
If you are starting to think about inheritance tax planning, it is important you don’t view it in isolation. The best approach is to consider inheritance tax as part of your wider financial planning by thinking beyond yourself and your partner and considering intergenerational planning issues.
The experienced Inheritance Tax Planning Solicitors at PSR Solicitors will look at your individual situation and help you to devise a strategy that achieves your objectives in the most efficient and effective manner possible.
In England and Wales, a person's Estate is legally defined as being everything that the person owned on the date of death.
This can include:
The first step is to identify exactly what the Estate is composed of including foreign assets and any debt (such as mortgages, credit cards, loans etc).
The total liabilities will be deducted from the assets to arrive at a net value of the Estate which will then be used as the basis for calculating inheritance tax.
It is never too late to start planning your Estate, but as with most things, the sooner the better.
It certainly doesn’t have to be complex, and in most cases a well drafted Will with one or two well-chosen additional steps would be all that’s required to make a substantial difference.
Our experienced Estate Planning Solicitors will help you ensure that the way assets are owned between you, your spouse and your family is structured properly, that you are making appropriate use of exemptions for lifetime gifts, and full use of all the other allowances and exemptions available to you.
Partnering with the right legal professional will give you the peace of mind of knowing your affairs are being taken off in the best possible way.
For personalised inheritance tax advice from the experienced team of Inheritance Lawyers at PSR Solicitors, please call our office using the number at the top of this page.
The rules surrounding inheritance tax can be complicated and confusing. To avoid the potential pitfalls and maximise the relief and exemptions available to you, speak with one of the inheritance planning professionals today.
Our friendly team will immediately put you at your ease and will explain everything in a clear straight-forward way, keeping you informed at all stages, to help minimise your stress and concern.
We offer a free first consultation over the phone or in-person with our Inheritance Tax Solicitors in Wrexham, Rhyl, Colwyn Bay, Shotton (Deeside) and in Cheshire (Ellesmere Port).
You can contact us today, safe in the knowledge that our dedicated team will handle your case with care and attention to detail.
We regularly carry out Inheritance Tax Planning services for clients across North Wales, Cheshire, Merseyside.
As recognised Estate Planning experts we can support your needs wherever you live in Wales or England.
We will respond to any query within one hour of normal office hours, or the next working day if you contact us during the evening or at the weekend.
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