Estate and Inheritance tax planning
When planning what will happen to your estate after you are gone, it is important to make sure you do everything you can to protect your loved ones’ inheritance. With the current rate of inheritance tax being 40% on assets over £325,000, there is the potential for this to significantly reduce what you are able to pass on.
Tayntons’ estate protection and inheritance tax planning solicitors and lawyers offer expert advice on how to protect the value of your estate and the legalities behind tax exemption options.
Our team, based in Gloucester, will guide and support you through deciding where your money will be best placed in order to get the most from it, be that through property, shares, pensions or even jewellery.
Our goal is to give you the peace of mind that as much of your estate as possible will be passed on to the people you care about.
The opportunity to find out for yourself where your estate will go
If you would like to find out what will happen to your estate if you don’t have a Will, we would like to invite you to try our short and simple Inheritance Questionnaire. It involves a simple questionnaire that can be completed via desktop, tablet or mobile. The questionnaire takes only a minute to complete and as soon as your heirs are identified, it will advise you of the results. In a surprising number of cases, the outcome is not what the user was expecting, prompting them to consider exactly what they want to happen to their estate when the time comes.
Our estate and inheritance tax planning services
We can help you explore various options to protect your estate and minimise your inheritance tax burden, ensuring your loved ones get the maximum benefit from your estate after you are gone.
Inheritance tax exemption
Everyone is allowed to pass on a portion of their estate tax-free. Currently, this is the first £325,000, however, married couples and civil partners can share their allowance, meaning they can avoid inheritance tax on the first £650,000 of their estate.
It is also worth bearing in mind that there will usually be no inheritance tax to pay if you leave your whole estate to your spouse, civil partner or a charity. There was a new tax-free allowance that came in in 2017 and is currently limited to £125,000 per person. This will increase to its maximum in 2021 of £175,000 per person and can only be used against your main residence if it is passing to direct descendants.
We can advise you on the best way to use your inheritance tax threshold and any other options that may be available to keep specific assets exempt from inheritance tax.
Depending on your circumstances, you can gift money or assets to your loved ones while you are alive, rather than making these gifts in your Will. This is because, as long as you make the gifts in the right way and a sufficient time before you pass away, they will not normally be included in the value of your estate for inheritance tax purposes.
We can advise you on everything you need to know about making a lifetime gift. That way, you can be confident everything has been handled correctly and you will not inadvertently be causing issues for your loved ones after you are gone.
Trusts can be a highly effective way to control how your assets are used to benefit future generations. They can allow you to keep money or specific assets, such as property, outside of your estate, as well as allowing you to protect those assets from unforeseen circumstances, such as your spouse remarrying after your death.
We are highly experienced in creating and managing trusts, so can guide you through the entire process, ensuring your wishes will be carried out and your loved ones are taken care of for the future.
Inheritance tax planning FAQs
What do we actually mean by the term ‘estate’?
Your estate is composed of your entire assets at the time of your death, which could include
property, a business, shares, money held in banks or savings accounts, pensions, insurance policies, personal effects (jewellery, furniture, antiques, cars etc.) and any other legal rights or interests
that you had. It can also include gifts that you may have given away in your lifetime.
Inheritance Tax (IHT) can significantly reduce the value of your estate and the amount
of money that your family and other loved ones will receive after your death.
When is Inheritance Tax paid?
Inheritance Tax is payable to HM Revenue & Customs following the death of an individual when the value of their estate exceeds the current nil-rate band.
At present, the first £325,000 of an individual’s estate is taxed at 0% and is therefore not liable for Inheritance Tax. For married couples and registered civil partners, the nil-rate band is increased to £650,000, where the full Inheritance Tax allowance has been passed to the surviving spouse or partner. Anything above this allowance is charged at 40%.
Why choose Tayntons for estate and inheritance tax planning?
Tayntons’ estate and inheritance tax planning solicitors and lawyers have been helping individuals and families to plan for the future for many years. We are based in Gloucester and regularly work with clients across Gloucestershire, including Cheltenham and the Forest of Dean.
Working alongside our estate and inheritance tax planning team, we also have a very experienced residential property team who can assist with any property issues involved with your estate.
Tayntons has achieved Lexcel accreditation from the Law Society, recognising the strength of our practice management and client care. We are independently regulated by the Solicitors Regulation Authority (SRA) providing assurance that we continually meet the highest legal and professional standards.
Get in touch with our estate and inheritance tax planning solicitors in Gloucester
Need help with estate and inheritance tax planning in Gloucester, Cheltenham, the Forest of Dean or anywhere in Gloucestershire? Please contact us today by calling 0800 158 4147, emailing us at firstname.lastname@example.org or requesting a call back.