Inheritance Tax Planning

Inheritance Tax Planning and how we can help you

As of the current tax year (2023/24), the initial £325,000 of an individual’s estate remains exempt from Inheritance Tax. For married couples and registered civil partners, the combined allowance effectively doubles to £650,000, provided the full allowance is bequeathed to the surviving spouse. Any portion of the estate surpassing this threshold is subject to a 40% tax rate upon the individual’s demise.  This is known as the nil rate band (NRB).

There is a further allowance known as the “Residence Nil Rate Band” (RNRB) is an inheritance tax free allowance currently set at £175,000. It applies to estates where the death occurs on or after 6 April 2017. The RNRB could save an estate up to £70,000 in inheritance tax (IHT).

To proactively address Inheritance Tax liability, several options are available for your consideration:

Strategic Will Planning: Ensuring that your Will is meticulously crafted and strategically planned can yield significant tax savings. Expertly structured wills can help maximise your tax exemptions and minimise the tax burden on your estate.

Lifetime Gifts: Another effective strategy involves judiciously transferring assets during your lifetime. This approach allows you to gradually reduce the overall value of your estate, potentially reducing the amount subject to Inheritance Tax upon your passing.

Utilisation of Trusts: Trusts provide a versatile tool for managing your assets and can play a crucial role in Inheritance Tax planning. By establishing trusts, you can retain an income stream from your investments while passing on the capital to your chosen beneficiaries, thereby reducing your taxable estate.

In summary, Inheritance Tax planning is a vital component of securing your financial legacy and ensuring that your loved ones receive the maximum benefit from your estate. We offer a range of tailored strategies to help you mitigate Inheritance Tax liabilities, preserve your assets, and plan for a financially secure future for your beneficiaries.


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Do you have any issues that you are worried about? Contact our professional team for a free, no-obligation informal discussion, where we can discuss your particular requirements in greater detail.

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