Inheritance Tax Planning

Inheritance tax is an issue of great concern to our clients. Whatever the rights and wrongs of the role of the tax in the overall tax system, inheritance tax is becoming deeply unpopular.

Many of our clients find themselves caught by inheritance tax by reason of the increase in property prices in the Bath area over recent years.

However our clients are affected, they need our expert advice on how their potential inheritance tax liabilities can be mitigated.

It must not be forgotten that we are all free to arrange our affairs in whatever legitimate manner we wish in order to save tax.

Our service

We have wide experience of advising on the potential inheritance tax liabilities that clients face and the steps that might legitimately be taken to save tax.

Whilst we recognise that the risk of inheritance tax liabilities can be a significant concern for clients, in many cases it is important to put the inheritance tax position in context.

It is often the case that there are more important priorities than simply avoiding inheritance tax. For example, it may be much more important for a husband and wife to retain whatever assets they need to ensure that they are fully and generously provided for, financially speaking, for the rest of their lives, than to rush into giving away substantial assets.

And we believe that most clients will not be well served if we advise them to enter into some of the complex and expensive inheritance tax saving schemes which may be subject to intense scrutiny by H M Revenue & Customs.

It is therefore critical to us to devote time and energy to understanding our clients and their circumstances in order to establish the role inheritance tax planning plays in the arrangements of their affairs.

Issues

The following are examples of issues which commonly arise in advising clients on inheritance tax -

• The use of lifetime gifts to reduce the value of an estate.
• The steps to take to deal with special sorts of property which are exempt from inheritance tax
• business property
• agricultural property
• heritage property
• Giving to charities.
• Exemptions for gifts to spouses and civil partners.
• Using trusts to protect the proceeds of life insurance and pension policies.
• The use of trusts to hold assets.
• Appropriately drafted wills, for example wills containing 0% inheritance tax band discretionary trusts.
• Varying wills after someone dies to save inheritance tax.
• The division of assets between spouses, including holding property as tenants in common.
• Double taxation issues arising with assets outside the UK.
• The effect of the UK domicile rules on inheritance tax.
• The application of inheritance tax to non-UK assets..
• Off-shore trusts and associated inheritance tax issues

We audit existing inheritance tax planning arrangements in order to ensure their effectiveness in the light of new legislation (e.g. the changes introduced by the Finance Act (No 2) 2006).

We work closely with client's other advisers (whether accountants or financial advisers) in order to ensure that clients best interests are served.

The wider offer

As part of our wider service to clients -

• We invite clients to review their inheritance tax planning arrangements, and offer no obligation review meetings to people who are not yet our clients.

Click HERE to book a review.

'Book a Will Review'