Inheritance Tax Planning
Our specialist solicitors at Lovedays Solicitors can advise you on how best to avoid or limit any future liability for inheritance tax. Lovedays Solicitors have been advising people on tax issues for over 100 years.
What is Inheritance tax?
Inheritance tax is a tax on your property and belongings which is paid after you pass away.
It is paid before a Grant of Representation is granted and therefore before the estate is released to the beneficiaries. This can mean that a large part of the estate does not pass to your loved ones but instead paid as tax.
How can you reduce inheritance tax?
There are many ways in which you may be able to reduce the inheritance tax. Most of these are things should be considered sooner rather than later.
These can be things such as
- Considering life insurance policies
- Making gifts
- Amending Wills to minimize tax.
- Business planning
- Considering whether a tax relief may apply.
There are considerations with all of these options and therefore we recommend that you book an appointment to come see one of our specialist lawyers. They will take some details of your finances and firstly consider whether you have to pay inheritance tax in the first place. They will also be able to advise you on potential options moving forward to reduce or limit the tax bill.
The tax law is constantly changing and therefore if you have previously considered your inheritance tax position it may be wise to review it to ensure that you are in the best position going forward.
What is the Nil Rate Band?
The nil rate band is an allowance where no tax is payable. This is presently £325,000 per person. This does change from time to time so please contact us for the most up to date advice.
Sometimes it is possible to transfer the nil rate band for example to your spouse. This can be a useful inheritance tax reduction tool.
There is also the main residence band which was introduced in 2017 which is valid on the main residence when it is given to a direct descendant. Please contact us for further details and the amounts of relief.
If you would like to find out more about how you may be able to reduce your inheritance tax bill then please contact us for further information. All initial enquires are free of charge.
