Mitigating inheritance tax and leaving your wealth to your loved ones in the most effective way possible is one of Tankard Wealth’s leading propositions.
Tankard Wealth’s Head of Estate Planning Julian M. Tankard LLB has worked in both the legal and accountancy profession in the United Kingdom and internationally for over 30 years. Using the experience that he has gained over the many years of advising clients, he now specialises in the fields of estate planning, inheritance tax and Wills from a local and international client perspective His role at Tankard Wealth is to ensure the mitigation of tax liabilities within the family and succession, predominantly through estates including exempt transfers as well as making the most use out of our clients’ Nil Rate Bands as part of our financial advisory solutions.
With inheritance tax and will planning it is imperative that all the essential information and background of our clients is meticulously gathered in order to ascertain what solutions can be proposed in regards to your estate.
Do I have an up to date Will in place?
Am I aware of the tax consequences of not having a Will?
How much tax am I likely to pay?
What burdens will my spouse/children/grandchildren have to face when I die?
Can I reduce or mitigate IHT on my estate?
Typically, these are the first few questions our advisers are asked by our clients who guide you through the estate planning process. Whether your IHT circumstances and requirements are complex or non-complex, we cannot stress enough the importance of having a Will in place, particularly given the considerable ease of having one nowadays.
The flowchart explains the potential and unintended implications of being intestate (No Will);
If you would like a consultation without obligation on a Will then contact one of our Advisers today.
How can I reduce or eliminate my IHT bill?
Individuals hold an inheritance tax allowance known as the ‘Nil-Rate Band’, which allows the first £325,000 of a person’s estate to escape the 40% IHT rate. Furthermore, for a married couples’ estate there is a combined threshold of £650,000 before any IHT is due.
If you have made any gifts or transfers in the past, in the form of cash or assets, it is important that you seek independent advice as you might have already used your threshold. Importantly, there are certain assets that may not form part of the estate calculations, such as pensions or gifting of a business, but still have tax implications associated with IHT Planning, including Gift Tax, Stamp Duty and even Tax burdens on your beneficiaries if not planned properly.
There are other legislative options that can be utilised as part of reducing your IHT bill;
Transfers between spouses are IHT exempt (Please note there are different rules for non-domiciled spouses)
Lifetime Gifts of £3,000 per year to another individual are exempt
Gifts on marriage (Limits apply)
Gifts to Charities, Political Parties or for the National Benefit
Habitual transfers made from normal expenditure
Gifts for education and maintenance
Small Lifetime gifts of £250 per gifted to any number of individuals
Actually, depending on your circumstances and personal requirements, Tankard Wealth may be able to eliminate your inheritance tax liability in its entirety. Through a bespoke strategy, it is possible to claim certain tax breaks such as making use of Business Property Relief and Potentially Exempt Transfers, thus alleviating any tax burdens on your estate. Effective IHT planning is important, which is why your adviser will take the time to carefully deliberate what solutions are available to your estate, and that they are clearly explained for you in a comprehensive Inheritance and Will Planning report.
Tankard Wealth’s Probate Service
Trusts
Family Partnerships
EISs
Potentially Exempt Transfers
Business Property, Agricultural and Woodland Relief
Chargeable Lifetime Transfers
It is likely that your estate will require more than one solution in mitigating Inheritance Tax, however the end result will always prioritise suitable access to income/capital and tax efficiency. Equally, the provisions to preserve your estate for your loved ones after your death can be planned today, so that even in an unpredictable future, your beneficiaries and assets can be protected from divorce, bankruptcy, responsibilities or other threats in their lives.
Contact our specialists at Tankard Wealth today to find out how.