Inheritance Tax Advice

Inheritance Tax is a levy the UK government charge on the estate (property, money, and possessions) of someone who has died, above a certain threshold, and is paid by their beneficiaries. In the UK, inheritance tax is levied on estates over £325,000.

However there are different ethical and legal mechanisms you can utilise to reduce, mitigate and avoid IHT. We offer an insight into these, in the next FAQ.

There are several ways to avoid inheritance tax. These include gifting, setting up trusts, making use of exemptions, and investing in tax-efficient products. 

Furthermore, equity release, business property relief, and using life insurance are other ways to avoid, mitigate and reduce your IHT bill.

It’s recommended to seek professional advice before taking any action.

If you are looking for advice on inheritance tax, you can talk to one of our experienced advisers. Our inheritance tax advisers can provide guidance on strategies to minimise or manage inheritance tax liabilities.

Our inheritance tax advice service is comprehensive and our IHT advisers are experienced, diligent, and professional. 

We have a network of experienced advisers across London and the South of England. We cover London, Essex, Kent, Surrey, Hertfordshire, Bedfordshire, and Hampshire.

Furthermore, we have an adviser who operates across Leicestershire and Rutland. 

As a general rule, to avoid paying inheritance tax on your parent’s house, you can mitigate it by making sure the property is transferred to a trust or given as a gift at least 7 years before death. 

Please note, this isn’t financial advice. This is an example of how paying IHT on your parent’s house can be mitigated. 

The specifics of each situation are different so, we always recommend seeking the advice of an estate planner, IHT advice professional, solicitor, or experienced financial adviser.

IHT planning can help to reduce the tax bill for beneficiaries, protect family wealth, and ensure that assets are distributed according to your wishes. 

It can also provide peace of mind and financial security for your loved ones. The earlier you start the planning process the better. We cover this in the following FAQ.

It’s best to start the inheritance tax planning process as early as possible, ideally when making a will or setting up trusts. 

It’s never too early to start planning, as it allows for more time to explore different options and potentially reduce the tax burden on your estate.

That said, there are rules around avoiding IHT, so we always advise getting independent advice from a professional.

Inheritance tax planning involves strategies to minimise tax on your estate when you die. 

This includes utilising allowances, gifting assets, setting up trusts, and potentially using life insurance or equity release to mitigate this tax.

Our advisers will first understand your current position and offer advice on what needs to be done now. They will ascertain from an initial consultation if you are likely to have an issue in the future, and can put plans in place to review and deploy strategies when needed. 

They will work with you over the long term to ensure your estate and your beneficiaries’ inheritance receive optimal protection. 

All of our IHT advisers offer a free initial consultation. You can approach this in two ways. 

Firstly, if you have some general questions, you may find the answers in this FAQ section. If not, one of our financial advisers can provide general advice.

Considering the various mechanisms that can be used to mitigate this tax, if are nearing or have reached the threshold, you and your beneficiaries will benefit most from actively discussing our services.

Gifting your house can be a way to avoid inheritance tax, however, there are many considerations. 

 There are rules around gifting and you may need to pay additional taxes or face other issues. It’s important to speak with an experienced financial adviser, IHT planner, or estate planning professional.

As mentioned in the previous FAQ, the earlier you start the planning process, the better.

Placing your house in a trust can help reduce inheritance tax liability, but it’s not a guaranteed way to avoid it. You should seek advice from a financial or legal professional to understand the implications and ensure that it aligns with your financial goals and circumstances.

If you feel you need advice now, talk to one of Sterling & Law’s local, experienced advisers today.