Inheritance Tax Planning

Inheritance Tax can make a significant dent in the value of your estate, especially where you own property or other significant assets. However, with smart Inheritance Tax planning, it is often possible to significantly reduce your estate’s tax liability allowing you to pass the maximum benefit to your beneficiaries.

At Graham Evans & Partners, our highly experienced Wills & Probate team can advise you on all aspects of Inheritance Tax planning, helping you to make your estate more tax efficient. We can guide you through the full range of options open to you, including making effective use of the relevant nil-rate bands, setting trusts and making gifts.

We understand how complex and confusing tax planning for your estate can be, so will explain everything in plain English, giving you complete confidence that you are making the best choices for your estate and your loved ones.

For advice on estate tax planning, please get in touch with our Inheritance Tax planning lawyers across South Wales today. You can contact Graham Evans & Partners for an appointment in Swansea, Bridgend or Port Talbot, email mail@geplegal.co.uk or use our simple enquiry form for a swift response.

How our Inheritance Tax lawyers in South Wales can help you

Advice on nil-rate bands

One of the simplest and most effective ways to minimise your estate’s liability for Inheritance Tax is to make sure you are making proper use of the nil-rate band. This is the threshold below which there will be no Inheritance Tax due on your estate.

Currently, the nil-rate band is set at £325,000, meaning the first £325,000 of your estate will be exempt from Inheritance Tax. If your total estate is worth less than £325,000, there will therefore be no Inheritance Tax to pay. If your estate is worth more than £325,000, Inheritance Tax will only be due on the part of your estate above this threshold.

A person’s nil-rate band can pass to their spouses or civil partners when they die, if they leave their entire estate to said spouse or civil partner. This means that if you are the surviving spouse/civil partner, you can have an effective nil-rate band of £650,000.

There is also an additional nil-rate band for your main residence if you are leaving it to your direct descendants. This rate is set at £150,000 for the 2019/20 tax year and will rise to £175,000 for the 2020/21 tax year.

Our Inheritance Tax planning team can advise you on the correct use of the relevant nil-rate bands, often making a significant difference to the overall tax liability for your estate.

Trusts

There are various ways in which trusts can be used to protect your estate or key assets from Inheritance Tax, while ensuring you and your beneficiaries are still able to benefit from your estate.

You can create a trust during your lifetime (a ‘lifetime trust’) or include provision in your Will for setting up a trust (a ‘Will trust’). This can be especially useful where you have dependants who are under 18 or who are vulnerable adults who will need to be cared for in the event of your death.

Our Inheritance Tax planning lawyers can advise you on the creation and management of trusts. Our expertise includes explaining when setting up a trust might be appropriate, the process for setting up a trust, choosing trustees and ensuring trustees have the right support to make proper decisions about managing the trust.

Making gifts

Making gifts from your estate during your lifetime can be a good way to reduce your estates IHT liability, while also allowing you to help your loved ones now rather than waiting until you are no longer around. However, there are strict rules about how making gifts affects Inheritance Tax liability, so it is important to take specialist advice before doing so.

Types of gifts you can may reduce your estate’s Inheritance Tax liability include:

  • Annual gifts up to a combined total of £3,000
  • Small gifts of up to £250
  • Wedding gifts ranging from £1,000-£5,000 (depending on your relationship to the person getting married)
  • Gifts to charity

If you have made larger one-off gifts, they may not be counted as part of your estate for Inheritance Tax purposes as long as the gift is made at least seven years before your death.

We can advise you on the use of gifts for reducing your estate’s Inheritance Tax liability, as well as ensuring any gifts you do wish to make are handled in the most tax-efficient way.

Why choose our Inheritance Tax lawyers for your estate

Our Wills & Probate team have decades of experience advising clients on Inheritance Tax planning issues. We can provide tailored guidance on the various options available to you, allowing you to minimise your estate’s liability for Inheritance Tax so you can pass the maximum benefit to your loved ones.

Graham Evans & Partners is independently regulated by the Solicitors Regulation Authority (SRA).

Contact our Inheritance Tax planning lawyers today

For advice on estate tax planning, please get in touch with our Inheritance Tax planning lawyers across South Wales today.

You can contact your Graham Evans & Partners in Swansea, or email mail@geplegal.co.uk or use our simple enquiry form for a swift response.