Our inheritance tax solicitors can advise you on all aspects of inheritance tax. This includes lifetime planning by making the most of your exemptions and planning for your wealth to be passed on in a tax-efficient way, whether it be through lifetime gifts, creating Trusts or tax-efficient Wills.
It is also becoming increasingly likely that you will need to consider inheritance tax in your overall financial planning. Our inheritance tax solicitors are able to work with your financial adviser and provide legal advice surrounding the current rules regarding inheritance tax, to optimise the possibilities open to you and to ensure that the legal paperwork produced meets your requirements.
Certain financial products can assist in removing capital from your estate whilst providing you with an income. These products can form part of the overall inheritance tax planning strategy for you and your family and include investing in companies which qualify for business property relief and discounted gift trusts.
Discounted gift trusts and gift tax
A discounted gift trust is designed for people who do not need access to their capital but wish to retain the right to draw a regular income. Once set up it allows a percentage of cash to be outside of your estate and not liable to inheritance tax on your death.
The percentage will depend on your age, gender and health as well as the size of the capital withdrawals. The balance will become fully exempt from inheritance tax once you have survived a further seven years from the date of the gift.
Life assurance may help those you leave behind to pay the inheritance tax, although life assurance cannot negate the tax due. This type of policy will pay out the cash to pay the tax as soon as it is due. Not only does this save your family from the financial worry and stress of having to find the money themselves it also enables probate (which can take some time) not to be further delayed.
It is, however, important to ensure that the insurance policy is written into trust otherwise the policy proceeds may be counted towards the value of your estate. Our experts can assist you with drafting the appropriate trust documentation and advising you of its suitability.
Why choose Trethowans?
Working with you and your family our inheritance tax solicitors will advise on:
- All aspects of life assurance trusts
- All aspects of discounted gift trusts
- Maximising business property relief by investing in the alternative investment market
To discuss your inheritance tax planning requirements with one of our experienced solicitors, call us today on 0800 2800 421.