Inheritance Tax is a duty paid on a person’s property and assets after their death and can consume a significant portion of the gift that you wish to pass onto loved ones. However, with expert planning with the advice of Inheritance and Tax Planning Solicitors, you can reduce this impact.
The current Inheritance Tax (IHT) threshold is £325,000 and IHT is charged at 40% of the value of your estate over that sum. Your estate will be deemed to include any assets that you have already given away within the seven years prior to your death. With careful planning, we can help you make the most of your Inheritance Tax ‘allowance’. In some cases, producing a tax-efficient Will could be all that is needed.
Our solicitors specialising in Inheritance Tax can help with the following:
- Inheritance Tax Planning and Estate Planning
- Transferring Tax-allowances to spouses and civil partners
- International Inheritance Tax
- Filing Inheritance Tax returns
- Drafting Wills to reduce the Inheritance Tax impact
- Charity donations
- Lifetime gift
- Setting up and administering Trusts
- Appealing IHT decisions by HMRC or Tax Tribunals
Incorporating IHT with other legal aspects
Inheritance Tax Law often overlaps with other legal aspects including Family Law, Probate, Trusts and Property. Our specialist Inheritance and Tax Solicitors are also highly trained in these other aspects and can therefore provide a full service to you and your family.
Does IHT apply if you leave everything to your spouse or civil partner?
Assets left to a surviving spouse or civil partner are exempt from Inheritance Tax; however, once they die, their estate may be liable to Inheritance Tax. We can advise you on making the most of your Inheritance Tax ‘allowance’ by using a Trust that still allows your surviving spouse to benefit and provides more to be passed onto family after their death.
Can I give away assets during my life to reduce the amount of IHT due after my death?
You can, but if you die within seven years of this gift, Inheritance Tax may be due on all or part of its value. You also cannot continue to benefit from a gift, so for example, gifting your house to a relative but continuing to live there means the house will still fall into your estate for Inheritance Tax purposes. Inheritance Tax rules can be quite complicated; therefore, it is advisable to seek expert advice.
When and how do I pay Inheritance Tax?
Inheritance Tax is due six months after the end of the month of death and begins to incur interest after this time. Usually, Inheritance Tax has to be paid first, and if there aren’t enough cash assets in the estate, the representatives may have to take out a loan to pay this. There are some cases where Inheritance Tax can be paid in instalments, but these will also incur interest.
Is Inheritance Tax applicable to everything I own?
There are some assets that carry relief from Inheritance Tax, and it can depend on how long you have owned an asset before you die. We can advise on any potential reductions during the Inheritance Tax planning process.
How can I avoid Inheritance Tax?
There are several options with regards to Inheritance Tax, depending on the assets you have, what you will need for the rest of your life and who you would like to benefit from your estate. We will discuss your wishes and all the options available during the planning process.
How we can help
At Simper Law, we work with our clients on a step by step basis, ensuring that we fully understand your situation and help you to plan as early as possible.
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