Inheritance Tax Planning
At Lionbridge Wealth Management, we turn the complexities of Inheritance Tax (IHT) planning into a personalised and reassuring journey.
As your dedicated Independent Financial Advisor, we understand that planning for the future involves more than numbers—it's about securing the legacy you've built for your loved ones.
At Lionbridge Wealth, we take a caring approach to IHT planning, offering transparent, expert guidance tailored to your unique circumstances.
Our financial advisor is here to be your companion on this important path, providing warmth, expertise, and support every step of the way. With Lionbridge Wealth, Inheritance Tax planning is not just a financial task; it's an opportunity to create a lasting impact for the generations to come.
01
When do you pay Inheritance Tax?
Your estate will be subject to IHT if, when you die, if it exceeds the individual nil-rate band which currently stands at £325,000.
Calculating how much your family will have to pay is often, although not always, simple.
Count up the value of all the assets, subtract the nil-rate band and the RNRB if applicable and what is left will be taxed at up to 40% - paid for by your estate.
If your spouse dies before you without fully using their nil-rate band, the unused amount can be carried forward to use when you die.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.
02
How does the residence nil-rate band work?
With the family home often making up a large percentage of an estate, the government has introduced an additional nil-rate band on top of the £325,000, known as the ‘residence nil-rate band’ as mentioned above.
The current residence nil-rate band is up to £175,000.
This means that if you give away the home you lived in before you died to your children (including adopted, foster or stepchildren) or grandchildren, they won’t have to pay IHT on the first £500,000 (£325,000 nil rate band + £175,000 residence nil-rate band) of its value if they sold it.
If you are a married couple or in a civil partnership then you can combine both your nil-rate bands, meaning that the first £1,000,000 of your assets, including your property are free from IHT.
As with most things in life, it’s rarely as simple as the example we’ve given. There’s a lot of complicated rules and calculations to follow when you’re working out how much IHT your family will have to pay, but we’re here to help.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
03
What to do about Inheritance Tax
Careful IHT planning is all about passing as much of your estate as possible to who you want to receive it, rather than to HMRC.
It’s also about maintaining flexibility and control over any arrangements that are made.
IHT Planning Considerations
IHT Planning with Lionbridge
Strategic estate planning, including the use of trusts, can help minimise tax implications on your estate. We work to structure your will and trusts in a way that preserves the maximum value for your heirs, minimising the burden of estate taxes.
Whether you're just beginning your estate planning journey or seeking to update an existing plan, Lionbridge Wealth is here to guide you.
Contact us today to schedule a consultation and take the first step in securing your legacy with precision.
Contact Us
At Lionbridge Wealth, we understand the importance of personalised financial planning. Whether you're looking to secure your financial legacy, optimise investments, or explore tailored mortgage solutions, our team of dedicated experts is here to guide you. Take the first step towards a brighter financial future by scheduling a consultation meeting with Lionbridge Wealth.
We invite you to reach out today to discuss your goals, explore our comprehensive financial services, and embark on a journey towards financial success. Let's shape your dreams into achievable milestones—contact us now to schedule your personalised consultation.