Inheritance Taxation and Planning

Inheritance Taxation and Planning


Inheritance Tax is currently payable at 40% on estates above £325,000 – and given the rise in house prices across the UK, many homeowners will leave an estate that will be liable for Inheritance Tax, depleting the amount of money passed on to heirs and future generations.


Most people would prefer to leave as much money as possible to their families and heirs – this means that forward planning is necessary when writing a will, to ensure that it is as tax efficient as possible.


Inheritance Tax planning can involve monies, property, land and valuable possessions – including assets held overseas or offshore.


Gifts and Inheritance Tax


It is possible to reduce the value of an estate by passing money to family while you are living via gifts.


Tax-free gifts include gifts between husband and wife or partners living in the UK, gifts to charities set up in the UK, as well as sums of money and gifts made to others seven years before your death.


These gifts are always tax-free – but another type of gifts called PETS (potentially exempt transfers) may attract Inheritance Tax under certain circumstances if you die within seven years of making the gift.


PETS can be reassessed or added to the value of the estate for the purposes of Inheritance Tax, so it is vital to take legal advice on gifting to save on Inheritance Tax.


Trusts and Inheritance Tax


Inheritance Tax can also be reduced via Trusts, which prevent any assets held by the trust being included in probate, as the Trustees manage the assets and/or will distribute them after death.


Setting up trusts can be a tax-efficient way of making sure property and wealth is passed to family and future generations.


Because Inheritance Tax planning is complex – especially with high-value estates and where there is extensive property or land, businesses or international or offshore assets – it is essential to seek expert legal advice on will writing and Inheritance Tax Planning.


In some cases, it may also be possible to change a will after death by Deed of Family Arrangement to make sure that monies and property are passed to family members without incurring a hefty Inheritance Tax liability.


Wills can always be amended if circumstances change – and Duncan Lewis wills and probate solicitors have considerable expertise in advising on Inheritance Taxation and planning for all sizes of estate and circumstances.


Duncan Lewis Wills and Probate Solicitors – Inheritance Taxation and Planning


Duncan Lewis wills and probate solicitors offer clear and focused advice on inheritance taxation and planning – including advising on high-value estates, where there may be an extensive property and/or land portfolio, agricultural or farmland, or international assets.


Our specialist wills and probate solicitors have offices nationwide – and have considerable expertise in advising families and couples on tax efficient wills.


Duncan Lewis wills and probate solicitors offer competitively-priced fixed fees for will writing, inheritance taxation planning and probate services, whenever possible – with hourly rates for contentious probate matters.


For expert legal advice on Wills and Probate and Inheritance Taxation and Planning, call Duncan Lewis Wills and Probate Solicitors in confidence on 0333 772 0409.