4. How do I reduce my exposure to inheritance tax?
- Looking at existing assets
- Figuring out your family and life goals
Inheritance Tax, or IHT, planning is just as much about understanding your goals and aims in life as much as it is about planning your estate in death. We aim to advise you on the ways that you can achieve your financial goals, such as travelling the world or leaving a sum for your grandchildren, while also maintaining your current standard of living.
We also work to understand your family tree and how you wish to divide your wealth when the time comes, often advising clients on the use of trusts, wills, and family investment companies.
IHT could take away up to 40% of what you leave to your loved ones when you pass away. However, everyone has a “nil-rate band”, which is the value of your estate that you can leave without being charged IHT, of £325,000. If you leave any property you own to a ‘direct descendant’, this increases to £500,000. You can also combine this figure with your partner. Speak to a tax specialist at Edwards to find out more.