There are a number of ways to reduce or minimise your Inheritance Tax liability and we can help you with effective inheritance tax planning.
Inheritance Tax is paid if a person’s estate (their property, money and possessions) is worth more than £325,000 when they die. This is called the ‘Inheritance Tax threshold’. The current Inheritance Tax rate is 40% on anything above the threshold. If 10% or more of the estate is left to charity this rate may be reduced to 36%.
Usually the ‘executor’ of the will or the ‘administrator’ of the estate pays Inheritance Tax using funds from the estate. An executor is a person or persons named in the will to deal with the estate. If there’s no will an administrator is then the person who deals with the estate. Trustees are responsible for paying Inheritance Tax on trusts.
i. AIM Investments invest in assets that are high risk and can be difficult to sell such as shares in unlisted companies. The value of the investment and the income from it can fall and rise and investors may not get back what they originally invested, even taking into account the tax benefits.
ii. Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.
iii. Will Writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for these aspects of our business.
You normally don’t have to pay Inheritance Tax if you are the person receiving an inheritance. However, there are some exceptions to this and we can help you to plan for these.
There are various ways in which Inheritance Tax can be reduced or even avoided and we can help you to plan which may be suited to you. For example, any of the following could potentially be used to your advantage:
- Exempt Gifts Allowance
- Potentially Exempt Transfers (PETs)
- Trusts
- Wills
- Alternative Investment Market (AIM)
- Equity Release
- Pension Planning and Inheritance Tax
- Life Assurance
*The Financial Conduct Authority do not regulate on Estate Planning.
The Financial Conduct Authority do not regulate on Wills, Inheritance tax Planning & Trusts.
The value of pension and the income they produce can fall as well as rise. You may get back less than you invested.