Inheritance Tax (IHT)

A big subject. Be concerned about this and seek our advice on mitigation IF you are a single person whose worldly goods exceed the nil rate band-currently £325,000 OR you are a married couple or in a civil partnership and your joint assets exceed £650,000.

Your Will is probably the best IHT mitigation device available to you. Your Will is a central part of the Fact Finding process for us with you. We work with your lawyer in bringing the Will up to date reflecting your wishes, incorporating IHT mitigation where it can do. We will work with your lawyer or if you prefer, we will introduce you to a lawyer who is experienced and skilled in this field.

When we take on a new client we sometimes spot life polices which have not been written properly and we can often place these in a trust for you thereby potentially saving IHT on a claim. Bear in mind that where an estate is above the threshold the balance is taxed at 40%, and simply placing a £100,000 life assurance policy in a trust can save your family £40,000. And I do mean simply.

Where a client has private pensions we ensure that the scheme knows your wishes by obtaining a nomination or trust form for you and this simple bit of paperwork can reduce the IHT take if you die. Where a client has an occupational pension we will obtain a form from the scheme trustees which performs a similar function-again a very simple bit of work which you should do and a financial planning area in which our experience and our advice, we hope, will be useful.

In cases where wealth has been accumulated and the retired client has a need for income, but a limited need for access to capital, we may suggest some tried and tested arrangements using trusts which can in many cases save a good deal of IHT and preserve an inheritance for the next generation.

IHT planning, like retirement planning is an ongoing process in a client's financial planning and when we are getting to know you, subsequently talking to you and writing to you with advice, Inheritance Tax Planning is an aspect which we will always be keeping in mind and guiding you through.

Will Writing, Estate Planning and some forms of tax advice are not regulated by the Financial Services Authority