Inheritance Planning

Wills are the cornerstone of planning when your client dies. Your client’s Will is likely to be his or her largest financial transaction. Only 40% of the adult population have Wills. Of those who do most are basic absolute gifts without asset protection for the next generation. We have been working with Professional Advisers for 23 years to advise on the specialist subject of estate planning.

Inheritance Tax

Inheritance Tax, often abbreviated to IHT, is charged on all transfers of value, whether made during a person’s lifetime or on death. Currently, the first £325,000, known as the Nil Rate Band, (NRB) is taxed at 0%. Any estates over that amount are taxed at 40% (20% for a lifetime transfer) unless the transfer is to an exempt beneficiary. Transfers between spouses and Civil Partners (CP) are generally (depending on domicile) exempt without limit and so any IHT only becomes payable on the second death. Legislation allows for the unused portion of a spouse’s or CP’s NRB to be transferred and used on the second death. (The Transferable Nil Rate Band).Nil Rate Bands (NRB) can be transferrable between spouses. For example: a husband died in 2002. On his death, his entire estate passed to his wife without using his NRB. She died in 2012 when the NRB was £325,000. His NRB is transferred on her death and therefore the two NRBs amount to £650,000 before IHT is payable.IHT is charged at 40% over and above the amount available for NRBs. So in the above example, if the net estate was £750,000 IHT would be charged (less 2 NRBs at £650,000) on £100,000 at 40% with an IHT bill of £40,000.

Advice on trust structures

How could your client’s estate be administered efficiently?Our professional service can advise clients beyond simply administering and winding up an estate. We add value by:1. Removing as many problems from our clients as possible by being efficient and dependable.2. Communicating to their representatives and you what, why and when we do things on your behalf.3. Distilling advice that makes a difference to their future.4. Making savings for clients where possible, e.g. minimizing inheritance tax.5. Ensuring that the deceased’s Will is appropriate for the beneficiaries.6. Ensuring that the beneficiaries’ estate planning is in order.