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.
“Been a customer with CRS since 2007, very happy with service and professionalism of the team.”Charlie T
“Chris was very friendly and knowledgeable and went through everything clearly and I was highly impressed by him.”Mr C Chuggie
“Really good service from Chris & Paul who have all been very patient with us.”Mr M Harper
“We found Chris Miller very helpful and very polite and made sure we fully understood what was said and discussed.”Mrs N Ravenscroft
CleverAdviser is an active management system for your investment or pension portfolio which offers a bespoke approach, using personal risk profiling and asset allocation tools to choose the best investment options for you.CleverAdviser Information
The world of investments can be daunting, especially if you are entirely new to it. But the right financial advice can help you choose the best options for your personal circumstances.Investments Information
Long Term Care
Whether you are planning for the future or have an immediate need for long term care, it is always best to speak to a specialist financial Adviser such as CRS in Northwich.Long Term Care Information
Retirement & Pensions
We all plan our retirement in our heads, thinking about how we will spend our time when we no longer have to go to work, but few plan for their finances or pensions in later life.Retirement & Pensions Information
Wealth management can help individuals, companies and trusts grow their wealth and earn an income from their investment portfolio.Wealth Management Information