Inheritance Tax Planning

Wetherby Wills offers full service to help with estate planning and inheritance tax.

Stress Free

I will keep you update to date through the whole process so you know all is in hand.

Expert support

Working together with trusted Financial Advisors to grow wealth whilst mitigating liability to Inheritance tax.

Peace of mind

Inheritance tax can overlap, I will review your estate to make sure you everything in place.

Areas to consider with Inheritance Tax Planning

  • How Inheritance Tax (IHT) rules may apply to your estate.
  • The structure of your Estate and how your estate can mitigate inheritance Tax.
  • Are their gifts you would like to plan within your estate.
  • Have you got a Will or has this been updated?
  • Have you got a Will or has this been updated?

Inheritance tax planning can be complex but I am here to help.

Top Questions about Estate Planning

Inheritance Tax is paid if a person’s estate (their property, money and possessions) is worth more than £325,000 when they die. This is called the ‘Inheritance Tax threshold’. There are different thresholds for previous years.

The rate of Inheritance Tax is 40% on anything above the threshold. The rate may be reduced to 36% if 10% or more of the estate is left to charity. Usually the ‘Executor’ of the will or the ‘Administrator’ of the estate pays Inheritance Tax using funds from the estate.

An estate is exempt from Inheritance Tax if the deceased left everything to their husband, wife or civil partner, who lives permanently in the UK. Married couples and civil partners can give any value of gift to each other during their lifetime without Inheritance Tax being due on them. This is known as ‘spouse or civil partner exemption’.

If someone’s estate is less than the Inheritance Tax threshold of £325,000, the remaining threshold can be transferred to their husband, wife or civil partner’s estate when they die – even if they remarried. This means the surviving partner’s estate can be worth up to £650,000 before any Inheritance Tax is due. The transfer is made when the surviving husband, wife or civil partner dies and this calculation is taken into consideration by the Executor of their Will or the Administrator of their estate when they work out how much it’s worth.

An Executor is a person named in the Will to deal with the estate – there can be more than one. An Administrator is the person who deals with the estate if there’s no Will. Trustees are responsible for paying Inheritance Tax on trusts. If you’ve received an inheritance, you usually don’t pay Inheritance Tax. There are some exceptions. You may still have to pay other taxes.

You may have to pay Inheritance Tax if someone who died gave you a gift while they were alive.

A full list of Inheritance Tax forms are available at on the Government website to suit different circumstances.

Gifts worth less that £250 can be given as much as you like, to whichever individuals you like, and these will not be subject to inheritance tax. Wedding gifts can also be exempt from inheritance tax, as long as they are made before, not after, the wedding.

There is an annual allowance for gifting of £3,000, which will not be counted in the value of your estate.

Inheritance tax can be reduced by making gifts to your family or friends or setting up trusts. You can give anything you own to your partner and this won’t be counted in your estate. Gifts given to other family members or friends (not your partner) will still be counted in your estate for 7 years, but after that the value of these gifts will be excluded from your estate. Alternatively, if you set up a trust you can assign cash, property or investments to someone who is not yourself, your partner or you child. These then no longer count as part of your estate for inheritance tax purposes.

All of these scenarios are complicated, and you may miss some important information around Capital Gains Tax, so make sure you seek professional advice before making a decision.

Tens of thousands of people every year have their bereavement compounded by the fact that their loved ones left no instructions on how their estates should be dealt with in the event of their death. Estate Planning is about looking after the assets you own and ensuring that with careful planning these are protected.

Planning your estate can involve many different aspects from basic Wills to Will Trusts and Lifetime Trusts. Modern families can have complicated dynamics and there is often a potential for conflict in the future if relationships break down or after the death of a client.

There are potential problems which can stand in the way of your legacy passing down:

  • Intestacy
  • Protection against care fees
  • Protection against children from being disinherited by a step-parent
  • Protection of your legacy from getting eaten up by a divorce settlement
  • Controlling a legacy after your death (gifts with strings)
  • Avoiding legacies being gobbled by debt
  • Preventing your estate passing to a new spouse

Plan effectively for the future

Plan your estate and save Inheritance Tax.