Inheritance tax (IHT) is usually paid when somebody dies and their estate – including any assets held in trust and gifts made within the seven years prior to death – is valued over the nil rate band, which is to be frozen at £325,000 until 2019.
As IHT is paid at 40 percent on anything over this threshold, it is vital to take action to minimise your liability during your lifetime. This can be done through the judicious use of trusts, gifts and insurance policies, as well as by making the most of the spouse exemption within your will, if applicable.
Our specialist solicitors can advise you on how to use these measures to best effect based on your particular circumstances.
We can also assist beneficiaries in reducing the potential IHT liability following the death of a loved one through a variation of the will (or of the distribution under the rules of intestacy if there is no will). This will ensure the assets are distributed as tax-effectively as possible.
Furthermore, if you have been appointed as the executor of an estate, we can provide guidance on any IHT mitigation measures available, ensuring you fulfil your duty of care to the beneficiaries as well as your legal responsibilities.
For more information on any of the high quality legal services provided by our specialist solicitors in Birmingham, please contact us.