What Is Inheritance Tax (IHT) Planning?
Inheritance Tax (IHT) planning involves structuring your estate in a way that minimises the amount of tax payable when you pass away, helping to preserve more of your wealth for your loved ones.
Without proper planning, your estate may be liable for a 40% tax on anything above the current IHT threshold (also known as the nil rate band), which is typically £325,000 per person (or up to £500,000 if the main residence is passed to direct descendants).
Common IHT Planning Strategies
- Making gifts during your lifetime
You can give away assets tax-free (within limits) to reduce the value of your estate. - Using Trusts
Trusts can help move assets out of your estate and provide greater control over how they’re used. - Spouse and charity exemptions
Gifts to a spouse or registered charity are exempt from IHT. - Business Property Relief & Agricultural Relief
These can reduce or eliminate tax on qualifying business or farming assets. - Life insurance in trust
A policy written in trust can cover the IHT bill and prevent further tax on the payout. - Taper relief
If you survive more than 3 years after making certain gifts, the IHT on those gifts may be reduced. attorneys are dedicated to guiding you through the estate planning process with compassion and expertise. We offer a range of services including wills, trusts, and probate administration. Our goal is to ensure that your assets are protected and your loved ones are taken care of.
Start Planning Early
The earlier you begin planning, the more options you’ll have. Our team can help you assess your estate, understand your tax exposure, and implement a personalised strategy that protects your legacy.