The Importance of Inheritance Tax Planning
Prepare Now To Secure Your Legacy
Inheritance tax is a topic people would understandably prefer not to think about. However, putting plans in place now will make the whole process considerably simpler and smoother for your loved ones when the time comes for them to receive the inheritance you will leave them.
What Is Inheritance Tax Planning?
Simply put, inheritance tax planning involves considering the implication inheritance tax will have on what is passed down to your beneficiaries and making decisions to mitigate the unnecessary impact.
What Is Inheritance Tax?
Inheritance Tax (IHT) is charged on the value of a deceased person’s estate, which includes savings, property and belongings. Inheritance money is passed on to beneficiaries, most often family members. The government takes a percentage of this money before the inheritance is passed on. How much tax needs to be paid depends on the value of your estate.
How Is Your Estate Valued?
Valuing your estate involves calculating the total market value of all your assets at the time of your death. This includes:
- Property
- Savings and investments
- Personal possessions
- Business assets
- Life insurance payouts (if not written in trust)
Any debts and liabilities can be subtracted from the total sum, this will determine the net value of your estate and the amount that will be eligible to be taxed.
How Much Do You Have To Pay On Inheritance Tax?
Currently (tax year 2024/25), IHT is charged at 40% of the value of estates with a total value of over £325,000 unless the inheritance is being left to a surviving spouse. There are exceptions and variations on this amount, it is important to be aware of your situation and circumstances and how this will impact what your beneficiaries will receive.
Why Inheritance Tax Planning Matters:
- Ensuring your estate for beneficiaries
By efficiently planning, you can ensure that as much of your estate as possible will go to your beneficiaries.
- Avoiding financial stress for loved ones
Arranging how your estate can be handled best will enable you to reassure loved ones that they won’t have to take on the task of sorting through everything while they are still grieving. Planning ahead allows for the process to go smoothly and for the inheritance to feel like a blessing to your loved ones.
- Awareness of exemptions and reliefs
You may be eligible for certain relief rates. Structuring your assets now will ensure that you take advantage of every option available to you.
Prepare With Professional Advice
Navigating inheritance tax planning can be complicated and often confusing. Working with professionals will enable you to be sure that you are receiving the best advice that is up to date with current legislation. Here at Hartley Fowler, our friendly specialists will work through your inheritance planning, making sure that it is completed thoroughly and tailored to your unique situation.
Our comprehensive services cover even more complex estate planning for estates close to the nil band or significantly over. We are experts at creating plans that precisely adhere to the law without minimising the amount your beneficiaries will receive.
Free Consultation
Take the first step towards effective inheritance tax planning and book a free initial consultation with Hartley Fowler’s experts. We will assess your individual situation and offer bespoke guidance. We will put together a competitively-priced quote for your consideration.
Safeguard Your Legacy
Whether you’re just beginning to think about inheritance tax planning or need assistance with complex issues, our experts are here to guide you every step of the way. We will take time to fully understand your financial situation, discuss your goals, and develop a customised plan that ensures your wealth is preserved and effectively passed on to your beneficiaries.
Get In touch
Contact us today to get in touch with our knowledgeable team. Don’t leave your financial future to chance—reach out to us now, and take the first step towards safeguarding your legacy.