Inheritance Tax Planning
Our team at Clapham & Collinge can let you know whether your estate is likely to be subject to a Inheritance Tax (IHT) charge on your death and, if appropriate, we can advise you on sophisticated tax planning arrangements. Very often, taking early specialist advice can save substantial amounts of tax.
There are many legal rules and methods for reducing IHT but some of the common methods we advise clients on are:
Reliefs and Exemptions
There are a number of reliefs and exemptions which apply on death, for example: some beneficiaries are exempt IHT; everyone has a 'nil rate band' and if you are married or in a civil partnership the 'nil rate band' may be 'transferable' on your death; Business and Agricultural Property Relief may also be applicable.
There are numerous types of gift which you may be able to make during your lifetime to reduce the value of your estate for IHT purposes. If these gifts are not made correctly they will fall back into your estate for IHT purposes, even if you do not physically own the property or money anymore when you die.
Deed of Variation or Disclaimer of Inheritance
If you receive an inheritance and you have no need for the money yourself, but you are worried about the effect it will have on your own estate for IHT purposes, you may wish to consider redirecting your inheritance straight to loved ones or charities. We can advise you on the technicalities of doing this in a tax neutral manner.
Spousal Bypass Trust
A trust can be set up to receive funds such as death in service benefits, which is then held for named beneficiaries outside of your estate.
When thinking about and planning for the payment of IHT, it will be necessary to consider the impact of other taxes you may have to pay, and our team will consider these with you as a matter of course. Beyond tax implications, when making gifts, setting up trusts or drafting Wills, there are many more practical implications which will be important to you, and we will guide you through these.
To discuss your circumstances in further detail, our dedicated Inheritance Tax Planning solicitors are on hand to help. Contact us today on 01603 693500 or email us using 'Make an enquiry' form on our website. Appointments are available at our Norwich, North Walsham and Sheringham offices.