Inheritance & Tax Planning

Without appropriate planning, a lifetime of hard work building your personal estate could be significantly impacted by inheritance tax.

Inheritance tax planning helps you protect your assets and ensures your estate and everything you have worked for remains with your loved ones. Good planning can help you reduce your inheritance tax bill by reallocating your assets in good time and within the allowances.

How inheritance tax works

The current inheritance tax threshold is £325,000, which means when you die if your estate is worth more than this amount it will be liable for inheritance tax. The amount of inheritance tax you will pay will depend on your financial circumstances, but is typically set at 40% on anything above the threshold.

For example, if your estate is worth £500,000, once you deduct the threshold amount of £325,000 your estate would need to pay 40% inheritance tax on the remaining £175,000. The executor of a will or administrator of the estate would be responsible for paying the tax using funds from the estate.

When should you start inheritance tax planning?

Planning for your death is never an easy subject, but the earlier you begin inheritance tax planning the more options you will have available to you and once it is complete you no longer have to worry about it.

Many of the options available to you are required to be in place seven years prior to your death, such as gifts. If the gift was made within seven years of you dying then your estate or the recipient will be required to pay tax on a portion of the gift amount.

Comprehensive inheritance tax planning advice from CRS

There are various factors that can influence the value of your estate and the liability your beneficiaries will face. At CRS, our inheritance tax planning advisers work closely with you to provide clear advice and comprehensive calculations to help you understand the best way to manage your affairs upon your death.

Having a clear understanding of how inheritance tax works, the exemptions and the options available to you can help you plan for the future, reduce your liability and make a huge difference to your family.

The Financial Conduct Authority does not regulate Tax or estate planning.

Looking for inheritance tax planning advice in Cheshire?

If you would like advice on inheritance tax planning, please get in touch via our enquiry form and a member of our team will be in contact to discuss your requirements.