Estate planning
A robust financial plan will allow you to understand how much you are likely to pass on to your loved ones after your death, and potentially mitigate the inheritance tax liability that will fall on your estate.
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Our financial planners will identify what measures may be available to reduce your IHT bill by using the reliefs and allowances at your disposal.
"Get in touch with Askaig Newington to speak to our financial planning team.
Our experienced professionals have a wealth of knowledge and a shared commitment to providing the best possible service to our clients.
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Whether you're looking to secure your retirement, grow your wealth, or navigate a complex financial situation, we're here to provide personalised advice."
What is inheritance tax?
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Inheritance tax is a charge levied against any part of your estate that exceeds the personal tax-free allowance (also called the nil rate band).
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Your estate comprises the total value of the following assets:
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Property (including your main residence)
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Investments
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Savings
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Most other worldwide assets
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Any gifts you have made in the seven years prior to your death
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Some assets are exempt from inheritance tax, or benefit from full relief. The most notable examples are pensions, and shares in most small businesses.
How much will my family need to pay?
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All individuals have a a tax-free nil rate band of £325,000. This means that the first £325,000 of one's estate is free from inheritance tax. Any unused allowance can be transferred between married couples when the first one dies.
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An additional nil rate band of up to £175,000 is available for individuals who pass on their main residence to direct descendants. This allowance starts to gradually reduce where the estate is valued at over
£2 million. Any unused amount of this additional allowance can also be transferred between married couples after first death.
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Inheritance tax is usually charged at 40% on any amount over the nil rate band.
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Book a meeting with a financial planner
Our initial meeting comes at no cost – it’s an opportunity for us to get to know each other and allows us to gain an insight into your current situation, goals, and objectives.
Our friendly financial planning team bring a wealth of experience and expertise. All our discussions are confidential, and you will never be asked to commit or sign up during our first meeting.
How to get in touch
6 Wrotham Business Park
Barnet
EN5 4SZ
How can a financial planner help me to reduce my IHT liability?
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While there is no 'silver bullet' with inheritance tax planning, there are a number of ways to legally reduce your IHT liability, including:
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Gift away cash or assets during your lifetime.
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Spend more money to reduce the size of your estate.
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Invest in assets which have exemption or relief against inheritance tax.
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Ensure life insurance policies are written in trust.​
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Gift at least 10% of your estate to charity on death.
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Our financial planners will help you create a strategic plan using some or all of these tactics to maximise the amount that you can leave to your family.
All information It is based upon our current understanding of current legislation and HMRC guidance. While we believe this interpretation to be correct, it cannot be guaranteed that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Thresholds, percentage rates and tax legislation may change in Finance Acts and bases of, and reliefs from, taxation are subject to change and their value depends on an individual’s personal circumstances.
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The Financial Conduct Authority does not regulate Tax Advice.