Inheritance tax rules can be complex and change regularly, so reviewing your circumstances often is advisable. When it comes to using an accountant, we are able to advise you on the most tax efficient way to plan for the future. Unfortunately without receiving this expert advice and guidance, often wills are drafted without these considerations resulting in your loved ones paying more tax and undervaluing your hard work during your life time your ability to leave the best legacy possible for them to enjoy.


Giving you more control


Expert financial advice and proactive tax planning


Effective solutions

  • Not just a middle man

At Pattinsons we are able to take instruction as a barrister’s intermediary. Once we’ve gone through your needs and wishes, we pass this over to the Legal Services Guild to draft your will, having used our expert IHT & will planning knowledge. Having obtained this partnership with LSG, we are able to pass these savings on to you whilst ensuring legally everything is in order. We are as a result able to be your only point of contact and you will only be charged one fee.

  • What is Inheritance tax and how it can affect your estate

Inheritance tax is calculated and payable on your estate upon death. Your estate includes everything you have of value, such as your home, saving and investments, cars and even jewellery and works of art.

IHT is usually payable if your estate exceeds the nil-rate threshold, which is currently fixed at £325,000 until 2021. Below this, your estate can be passed to your beneficiaries free of tax. If you own your home and plan to pass it on to your blood relatives when you die, then all or part of this may fall outside of your estate when calculating inheritance tax.

It is also the case that anything left to either your spouse or civil partner will be exempt, regardless of value (even if it exceeds your nil-rate threshold). Same applies to exempt beneficiaries such as charities.

The value of your estate above the nil-rate threshold will be taxed at 40%. There are ways in which you can mitigate tax, for example, by leaving 10% or more of your estate to charity, it will usually qualify you for a reduced rate of 36%.

  • How to take advantage of the transferable nil rate band

Did you know, If you are married or in a civil partnership and your partner’s estate is worth less than his or her nil-rate threshold, anything that is unused can be added to your threshold, providing your executors make the necessary elections within two years of your death. Pattinsons are able to talk you through this process and also transferability options for those who could use the additional threshold from first death.

  • Setting up a trust to reduce IHT liability

Trusts can be a useful way of reducing the impact of inheritance tax. Assets such as cash, property and investments can be placed in trust. The trust will stipulate who the beneficiaries can be and as long as you are excluded, you will be viewed as having gifted the assets into the trust.

Thus giving you the opportunity to appoint trustees who will manage the trust on a day-to-day basis while you maintain control over the trust investments and who will benefit from them (beneficiaries). Trustees are an effective way of protecting family assets which can be particularly useful if someone is unable to handle their own affairs.

A trust can be set up right away or you can establish one In your will. Contact Pattinsons today to discuss capital gains tax consequences and the best option for you. Bear in mind that some types of trusts are subject to their own tax regimes and may be liable to inheritance tax.

  • Setting up a will to ensure your loved ones benefit

If you die without leaving a will, your estate will be shared out according to the rules of intestacy. This means the law will decide how your assets are distributed. Only married or civil partners and some other close relative can inherit under the rules or intestacy.

Often when this happens, your estate may not be distributed how you would have preferred and you are likely to have to pay significantly more tax than if you had left a valid will. By putting a will in place (and keeping it updated) you can ensure that when the time comes, your estate is shared out according to your wishes and in the most tax efficient way possible.

Please note some of this advice is not regulated by the financial conduct authority.

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