ESTATE & INHERITANCE TAX PLANNING

ESTATE & INHERITANCE TAX PLANNING SPECIALISTS

Ensure your loved ones inherit as much of your wealth as possible by addressing your UK and international inheritance tax concerns. Our team specializes in estate and inheritance tax planning, offering expert guidance.

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Navigating inheritance tax can be intricate and costly. Your estate might face a 40% tax on all global assets beyond the initial £325,000 (or £650,000 if married or in a civil partnership), with an additional £175,000 or £350,000 “residence” nil rate band in specific situations.

The actual inheritance tax amount hinges on various factors, such as your domicile (the country HMRC considers your home for inheritance tax, distinct from general law), marital history, asset locations worldwide, and estate composition (including property, cash, stocks, shares, art, antiques, etc.).

For instance, assets abroad may incur UK inheritance tax if you’re domiciled here, but not if your domicile is in another country. Another scenario: widowed individuals might be eligible to transfer their spouse’s nil rate band, even if the loss occurred as far back as World War II.

Receive specialized advice on efficiently planning your estate. By organizing your estate in a tax-efficient manner, you can potentially minimize HMRC’s claim, ensuring your loved ones inherit more. This approach may reduce the urgency for beneficiaries to swiftly sell assets to cover tax bills, streamline paperwork, and prevent costly disputes with HMRC.

FAQ

When should I begin considering inheritance tax planning? The pivotal timeframe for such planning is seven years. To avoid paying inheritance tax on gifted assets to your children, it is crucial to survive this specific duration. Instead of relying on the uncertainty of reaching the seven-year mark, you might wonder if transferring your house to your son is a viable strategy for inheritance tax mitigation.

Is it possible to give my house to my son to minimize inheritance tax? Engaging in this practice at least seven years before your demise can diminish the estate’s overall value. Consequently, this may either reduce or entirely eliminate the inheritance tax obligation for your children. Termed the seven-year rule, this timeframe holds significance in effective estate planning.

What is the seven-year rule to sidestep inheritance tax? Under this rule, no tax is levied on gifts provided you live for seven years after the gift is given, unless the gift is associated with a trust arrangement. Familiarizing yourself with the intricacies of the seven-year rule is essential in navigating inheritance tax considerations.

How does HMRC track information about gifts? Following the estate distribution commences. However,  your executor must complete a form declaring any gifts made. This information is crucial for HMRC to accurately assess any inheritance tax liability on your estate.