Estate planning and Inheritance Tax

Estate tax planning

Estate planning and inheritence tax in North Wales

Few of us like to think about dying, however, the relevant legislation makes it essential for us to plan well in advance.

This means making the necessary provisions NOW.

There are many tax opportunities available and the earlier arrangements are made, the greater the chance of taking full advantage of our complicated tax system.

For further information on estate planning services and to arrange an initial free of charge meeting, please contact us.

Inheritance tax (IHT)

A charge to IHT may arise on 3 separate occasions:

  • when an individual makes a transfer of property into trust during their lifetime;
  • on the death of an individual, when lifetime gifts in the 7 years prior to death are reconsidered; and
  • on the death of an individual, when the net chargeable estate is taxed.

The nil rate band before IHT applies is currently £325,000. This means that where the net chargeable estate on death, together with the total of gifts made in the 7 years prior to death are less than £325,000, no IHT becomes payable.

An individual can reduce their estate during lifetime by making use of various exemptions.

Any gifts to a spouse or civil partner are totally exempt from IHT.

Other gifts on death may be exempt, thereby reducing any IHT payable.

Any unused nil rate band on death may be transferred to a surviving spouse or civil partner.

We can advise on all aspects of IHT, including:

  • making full use of exemptions and lower tax rates on lifetime transfers;
  • optimising lifetime transfers between family members;
  • transferring agricultural or business property;
  • transferring assets into trust; and
  • arranging adequate life assurance to cover potential inheritance tax liabilities.

For further information on our IHT planning services and to arrange an initial free of charge meeting, please contact us.