If your estate is worth more than a certain figure, your beneficiaries will be forced to pay Inheritance Tax when you pass away. That is, unless you take the time to do some vital Inheritance Tax planning. At Talbots Law, we think that if there’s a way to minimise your Inheritance Tax, we should help you find it.
If your property is above the Inheritance Tax Threshold, the tax will fall directly to the executor of your Will to pay when you die. However, with a specialist Inheritance Tax solicitor on your side, you may be able to reduce your liability. This is best done through your Will, and together, we will explore the various options of how to achieve this.
Why choose Talbots Inheritance Tax solicitors?
At Talbots Law, we want what’s best for our clients. When you work with us, we take on a can-do attitude in finding solutions to your problems. When it comes to Inheritance Tax planning, our solicitors know their stuff. Before we advise you on the best method of reducing your Inheritance Tax liability, we’ll help you to weigh up all your assets and calculate the total value of your estate. In these cases, there is never a one-size-fits-all solution. That’s why we’ll take the time to get an in-depth understanding of your situation in order to provide advice that works in accordance with your personal circumstances.
How can I minimise my Inheritance Tax liability?
If you’re worried about the Inheritance Tax on your estate, there are a few solutions:
Making a gift or gifts to family members or friends from your estate is a great way of cutting the amount of Inheritance Tax you are liable for. If you’re married or in a civil partnership, you can pass your estate – either in whole, or partially – to your spouse, tax-free. The same rules will not apply if you are in a relationship but not married or in a civil partnership, so be wary of this.
If you wish to make a gift to someone who is not your legal spouse, the value of the gift will be included in Inheritance Tax, but only for seven years. That means that if you give a certain amount to a family member or friend but you go on to live seven years longer, the gift will no longer be liable for Inheritance Tax when you die.
By putting a certain amount of your assets into a trust fund, they will no longer count as part of your estate and therefore will not be liable for Inheritance Tax. So, if you were to set up a trust to support a family members’ education, this money would not be included in Inheritance tax.
It may, however, be subject to other forms of taxation. The rules surrounding tax and trusts vary depending on the situation, so speaking to an expert can help to clarify whether it’s a good idea for you.
A good way of reducing your Inheritance Tax bill is to give a certain amount to charity of your choice. By giving at least 10% to charity, not only do you benefit the cause, but you reduce the amount of Inheritance Tax that is due on the rest.
Can Inheritance Tax be reduced after death?
In certain cases, it’s possible to draw up a deed of variation to minimise the tax due on an estate. This can only be done within two years of the death. While this may be possible, we find that a little tax planning today can save a great deal of time and effort for the executor once you have passed.
Speak to our solicitor about other forms of exemption or relief from Inheritance Tax. Together, we will find a solution that works for you. Just give us a call on 0800 118 1500 to make an appointment with one of our Inheritance Tax solicitors.
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