Inheritance Tax Planning

Inheritance tax (IHT) is calculated based on the value of the property, money and possessions of someone who has died, if the total value of their assets exceeds £325,000. 

At Navigate Wealth, we offer advice on the most tax-efficient options available to you in order to ensure your family members receive the most financial relief possible in the event of your death. 

To find out more about the avenues available to you, or to arrange a free consultation, contact the Navigate Wealth team on 0345 340 9690 or use our submission form.

What is inheritance tax? 

Inheritance tax has to be paid before probate is granted (when all assets are distributed) and the inheritance is released to your loved ones. Inheritance tax can take a sizeable proportion of the wealth you wish to leave to your family. 

According to inheritance tax law, your estate includes: 

  • Your home and any other properties you own
  • Your possessions 
  • Bank and building society accounts 
  • ISAs 
  • Any other investments 
  • Insurance policies not paid out under trust arrangements 

How do I reduce inheritance tax liability? 

There are a number of ways in which we can help you manage and distribute your wealth, to reduce the amount of inheritance tax that is applied after your death. Our specialist advisers can offer advice on the following: 

  • Lifetime gifts 
  • Structuring wills 
  • Setting up trusts 
  • Restructuring your inheritance tax plans following a marriage or divorce
  • Structuring your affairs to make the most of reliefs 
  • Investments with favourable inheritance tax treatment 
  • Deeds of variation - where a will, or part of it, can be varied after death in order to save inheritance tax 

One of the most valuable inheritance tax reliefs is Business Property Relief, which allows qualifying business assets to be passed to the next generation without inheritance tax. Navigate Wealth can help you to decipher this area as part of your inheritance tax planning. 

Changes to inheritance tax in 2017 

Changes were made to inheritance tax law on 6th April 2017 that may benefit individuals who want to pass on their estate to their children or grandchildren. 

The changes meant that in addition to the existing tax-free threshold of £325,000, the government introduced a Residential Nil-Rate Band (RNBR) for estates worth up to £2 million. The RNBR will only apply when a home is being passed on to children or grandchildren and is being phased in annually starting in the 2017/2018 tax year.

  • 2017-18: £100,000
  • 2018-19: £125,000
  • 2019-20: £150,000
  • 2020-2021: £175,000

It is possible for married couples and civil partners to transfer their RNRB to double their tax-free allowance. The RNRB is also transferable so it will effectively be worth £250,000 by April 2020. This means that by 2020, couples will be able to pass on a total of £1 million in assets without paying any inheritance tax. 

Contact us

To find out more about inheritance tax, or to arrange a free consultation, you can contact the Navigate Wealth team on 0345 340 9690 or use our submission form.

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