Inheritance Tax
Our dedicated Inheritance Tax Solicitors are experts in the field, and will be on your side and by your side to ensure that you receive straightforward and effective legal advice, suited to your needs.
Effective inheritance tax planning ensures your loved ones benefit as much as possible from your assets, property, and wealth when you pass away.
If you have significant assets, particularly business or overseas assets, you’ll want to ensure that your wealth passes on to the next generation without incurring unnecessary inheritance tax charges.
The first £325,000 of your estate – known as the ‘nil rate band’ can be passed on without being taxed. If you own your home the allowance you can pass on inheritance tax-free increases by £175,000 or a total of £500,000 which is fixed until 2026. Anything over and above that will be liable to 40% inheritance tax. There are exemptions, such as anything you leave to your spouse or civil partner, and certain property and business reliefs.
It’s essential to take the time now to arrange your financial affairs. This includes using any reliefs or allowances to maximum advantage and managing your wealth using inheritance tax planning tools such as lifetime gifts, potentially exempt transfers (PETs) and trusts. This can help you leave a greater legacy that will keep future generations protected.
We specialise in inheritance tax planning for individuals subject to IHT such as high-net-worth individuals, entrepreneurs, and property investors. With Rowlinsons solicitors you get expert legal advice so you can effectively plan your estate’s IHT tax.
We can provide clear, effective advice on issues including:
Our inheritance tax solicitors have many years of experience helping individuals and their families across England & Wales plan for their passing - or that of a loved one. Our expertise in this area has gained us the Excellence in Private Client Award from the National Law Society in 2018. Rowlinsons Solicitors was also awarded Highly Commended in the Boutique Private Client Team of the Year category at the British Wills and Probate Awards 2023.
Our team includes some of the most prominent and renowned Wills, Trusts, and Estate Planning Solicitors in Cheshire and members of STEP (the Society of Trust and Estate Practitioners) further reflecting our technical know-how and expertise in this specialist area of law.
Inheritance tax planning often overlaps with other legal areas such as probate, family law and property. Rowlinsons is a leading full-service law firm in the UK. We have specialists in all these areas and you’ll get the best advice and legal support at what is likely to be one of the most challenging times you will ever face.
You’ll receive the dedicated support of a qualified solicitor throughout the entire process, and you will always have direct access to them when you need to talk. If you want clear, effective, and practical help to best support your inheritance tax planning, get in touch with our dedicated team today.
The amount of Inheritance Tax (IHT) chargeable on your estate after you pass away can make a significant difference to the value of the assets your loved ones inherit. This means it is important to understand the rules around inheritance tax so you can potentially mitigate this.
Efficient inheritance tax planning reduces the inheritance tax liability on your estate when you pass away so more goes to your beneficiaries and less to the tax man.
Inheritance Tax law is a dynamic area of law and the rules can change which is why it’s vital to have a plan and make sure it’s up to date.
To make an appointment please call 01928 735 333 or click here for a call back.
With careful planning using different options, you can reduce the value of your estate that will be liable for tax while ensuring your beneficiaries can benefit from your wealth.
Options include:
One of the most obvious ways of reducing your estate for inheritance tax purposes is to make lifetime gifts of money, property or other assets. However, there are rules around how much of your estate you can give away tax-free.
If you’re married or in a civil partnership you may gift your partner any sum you like as long as your partner resides in the UK. To anyone else, you can give a total of £3000 away per year. This is known as the annual exemption. You can also give as many smaller gifts of £250 as you like - so long as you haven’t used up your allowance for that person.
Wedding gifts are exempt with the rules being £5000 for a child, £3250 for a grandchild, and £1000 for anyone else.
Larger gifts over the annual exemption may be subject to inheritance tax if you die within seven years of making the gift. These are known as potentially exempt transfers (PET) and will be free from inheritance tax if you survive seven years from making the gift.
Gifting your money into a trust can potentially take it out of the inheritance tax net, but it’s essential to understand the rules to get this right. That’s why if you’re undertaking IHT planning it’s crucial to get professional financial and legal advice tailored to you.
A trust arrangement is an inheritance tax planning tool that allows you to leave part of your estate to a beneficiary or beneficiaries. Instead of gifting your beneficiaries their inheritance while you’re alive, you place the assets into a trust for them to receive at a later date. The benefit is you have more control over your money than if you simply gave it away. Depending on the rules governing the trust this can immediately protect part of your estate from inheritance tax.
There are several different types of trusts which can help with inheritance tax planning including gift and loan trusts and discounted gift trusts, to name two common ones. Each arrangement has different advantages and disadvantages. All types can be used to protect property or to provide financial support for children, with trustees overseeing the management of these.
The trust is typically structured in one of two ways.
Bare/absolute trust: With a bare or absolute trust, you name one or more specific beneficiaries at the creation of the trust. The trustees only have control until the beneficiaries turn 18 (or another specified date) and then the trust belongs to them.
Discretionary trust: A discretionary trust is more flexible because you can still change the beneficiaries at a later date. This gives the trustees more control over the assets, which they can distribute at their discretion. However, any money transferred into a discretionary trust is a chargeable transfer and may be immediately chargeable for inheritance tax.
Rowlinsons can advise you on the one that’s right for you. Get in touch with our expert inheritance tax planning solicitors today for more information.
You can take out a life insurance premium and put it into a trust so that on your death the proceeds of the policy will be paid directly to your beneficiaries and won’t be included in your estate. This money can help to mitigate any inheritance tax due on the estate.
Anything that you leave to charity or a political party in your will is excluded from your estate for inheritance tax purposes. This means you can support a cause close to your heart while reducing the charge of IHT on your estate. You could even set up a charitable trust in your name and leave behind a legacy which helps support a worthy cause.
You can keep your home in the family by handing it over to your children while you’re still alive, but you must be aware that there are rules in place to stop you from simply gifting your home to avoid inheritance tax. You will have to sell your home to them at the current market value and pay them the current market value in rent if you want to remain living there, otherwise, it will be classed as a gift with reservation of benefit (GWROB) and may be counted in full for inheritance tax.
You can give away assets during your lifetime, but if you try and dispose of assets to exclude them from your estate for inheritance tax you may still be liable for IHT. This includes lifetime gifts over £3000. Rules on lifetime gifts are complicated so it’s important to get expert legal and financial advice.
Rowlinsons can help you understand your options so you can make the most of your wealth to benefit future generations without being charged more than necessary.
Inheritance Tax planning is a complicated process. There are many different options to consider when minimising the IHT chargeable to your estate so you can maximise the inheritance you pass on.
These strategies are complex, which is why it’s essential to speak to an expert. Rowlinsons solicitors can provide clear, effective advice on inheritance tax planning to help you understand your options and show you the steps you can take so you can leave more behind for your loved ones.
Our friendly and approachable team have many years of experience within Estate Administration to help you with inheritance tax planning. Our expertise and high reputation within the law industry means that we can help deliver results, acting swiftly with accuracy.
You can be assured that you are receiving a high-quality service where we are on hand to help you, no matter the issue. Our well-regarded solicitors in Cheshire will work with you to resolve matters and ensure that the future is planned for in a time of rising house prices.
You deserve to receive the best legal expertise which we can provide here at Rowlinsons. Our offices are based in Frodsham and Runcorn (Sutton Weaver), and we regularly help clients in the Northwest, such as Northwich, St. Helens, Widnes, Warrington and Chester but we are on hand to help you across England and Wales. Whatever your query, do not hesitate to get in contact today.
To make an appointment please call 01928 735 333 or click here for a call back.
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