Estate Planning & Inheritance Tax
Protecting Wealth, Leaving a Legacy...
Each year, increasing number of estates are being dragged into the Inheritance Tax (IHT) net. With Nil Rate Bands Frozen until 2031 and pensions in scope from April 2027 those number will continue to increase.
Estate planning is about protecting your wealth and passing it on in line with your wishes.
Our ethos is life-focused: we listen to your goals for family, legacy, and security, then create a financial plan that is designed to help ensure your loved ones are taken care of.
From inheritance tax planning to wills, trusts, and gifting strategies, we help you structure your estate in the most tax-efficient way possible. For professionals and business owners, this means clarity, confidence, and control over the future.
Estate planning is not just about money — it’s about leaving the legacy you want for the next generation.
When do I pay Inheritance Tax?
Everyone has an individual nil-rate band of £325,000 which can be passed on without any inheritance tax liability. If your estate is above £325,000, it will be subject to IHT.
Calculating the value of your estate and then the tax liability, is not always straight forward, but very simply, if your estate is calculated as £500,000, you would subtract your £325,000 of nil-rate band, leaving £175,000 which would be taxable at 40%.
What is the Residence Nil Rate Band? (RNRB)
Your main home often makes up a large part of your overall wealth and, where this is the case, you may be entitled to an additional £175,000 of tax-free allowance on your estate.
Providing you are;
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Passing on your main home (this will be where you were living immediately prior to your death)
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Passing this home to children (including step, foster or adopted) or grandchildren
then the value of this home, up to a maximum of £175,000, will be added to your nil-rate band of £325,000.
This means, including your main home, you could have an estate value of £500,000, before incurring an inheritance liability.
For married couples or those in a civil partnership, these allowances can be combined, meaning that potentially the first £1,000,000 of the couple's assets, would be free from IHT. If your Estate exceeds £2,000,000 then the RNRB is withdrawn by £1 for every £2 over that threshold. As such, if your Estate is £2,700,000 or more you will not benefit from any RNRB relief.
What are your options?
Gifting
Gifting during your lifetime is a good way to distribute your wealth, and it is often a positive experience to witness how your money benefits others, whilst you are still alive.
However, there are rules around gifting, which could result in tax charges either during your lifetime, or after you pass away if they are not adhered to.
There is also the added worry of ensuring you don't give away too much which could impact your own lifestyle in subsequent years.
Trusts
The use of trusts can be an excellent way to move money from your estate to help reduce inheritance tax liabilities but also retain some control over who, how and when money is distributed.
This method can help with complex family structures and where there might be a need to preserve wealth over multiple generations.
Investments
There are various investment vehicles which can be used for effectively as part of intergenerational wealth planning and tax reduction including the use of pensions, ISAs (including Junior ISAs) and products which can benefit from Business Relief.
As part of your financial plan, we can help include some of these tools to help make your wealth transfer as easy as possible.
N.B. These are often higher risk strategies and only considered where appropriate for your circumstances.
Insurances
Insurance policies are considered an essential tool to ensure your family are taken care of, once you are gone.
These policies can be used for a variety of intergenerational planning, including helping your business, paying debts, providing income or to cover an Inheritance Tax Liability.
Personal Estate Planning
Your estate and family circumstances are unique to you, and however complex your situation, we will take you through our estate planning process, step by step.
We take the time to get to understand your specific concerns, and aspirations, to help you build your own bespoke estate plan.
Wills
Ensuring you have an up to date and valid will in place is essential to ensure that you wealth is distributed in the way you would like.
Passing a way without a valid or up to date will can leave you "intestate" which brings about uncertainty, complexity and additional cost to your loved ones.
Spend!
Ultimately... just enjoy yourself!
It's your money.
Questions We Answer
How can I reduce inheritance tax on my estate?
Various avenues exist such as using trusts, gifting, allowances, and smart use of exemptions, and our advisers can help recommend the most suitable ways to help preserve family wealth whilst at the same time helping to ensure that your own financial future is secure.
How can I protect my business assets for future generations?
Succession planning, trusts, and shareholder agreements can safeguard your business and family wealth when structured correctly and when they are aligned with your own goals within a financial plan.
How do I make sure my family is financially secure after I’m gone?
Similarly to the above, a well formulated financial plan will include considerations for how your wealth will be distributed to help ensure love ones are taken care of, and where applicable this may include the use of insurances, wills, trusts and other estate planning strategies.
Do I need a will or a trust?
A will is an essential part of helping to ensure that your wishes are followed rather than you dying intestate and where your wealth would be distributed according to the rules of intestacy; a trust can offer more control and tax efficiency under some circumstances but is dependent on your overall financial plan.
Estate planning is complex and subject to individual circumstances and utilising certain tax saving strategies can involve risk, particularly where investments are concerned.
Tax rules and law can also change over time and so it is important to engage with qualified planners to ensure that the strategies remain viable.
Please note that the Financial Conduct Authority (FCA) does not regulate some aspects of cash flow, estate or tax planning, or trust advice.
Cover will cease on insurance products if premium payments are not maintained.
"They took time to understand what matters to me, explained options and never pressed. I left with real peace of mind and a plan I understand and trust. They are without doubt knowledgeable, trustworthy, transparent, and reliable - thank you Matt Bennett."
Ian Davies
