What is inheritance tax?
Inheritance tax is a tax on your estate paid after you’ve passed. Your estate includes property, assets and money – all that stuff you’ve worked hard to build up over the years. If your estate is worth more than £325,000 (the 2020/21 threshold) you’ll probably need to pay inheritance tax.
It can sometimes feel unfair to have the taxman swoop in and grab a slice of the estate when people are grieving but the good news is that this is yet another aspect of tax that can be made less painful with a bit of planning.
Mayflower can provide all the support you need to plan your estate and take steps to ensure as much as possible gets passed on to those you want to provide for after you’re gone.
How can I keep inheritance tax under control?
It’s not pleasant to think about but facing up to reality and being aware of inheritance tax is half the battle. Making sure you’ve got a solid will in place is a good idea, too. Then it’s all about tax strategy, which is where we come in.
We’ll look at your total estate, from personal property to business assets, and help you identify opportunities to, for example:
- make use of nil-rate band transfers
- make gifts to family members
- donate to charity
- employ trusts.
We can also work with your solicitor to ensure that any will you have drawn up takes the tax implications of your choices into account.
Our approach to inheritance tax
As with everything we do, it starts with taking the time to understand your goals and perhaps your concerns. Do you want to exit your business or hand it on to someone else? Who do you most want to benefit from your estate in the long-term and what kind of legacy do you want to secure?
For most of our clients, inheritance tax doesn’t stand alone – it ties into their personal and business tax situation, with blurred lines between work and family. We get that and take the bigger picture into account when supporting you with estate planning and devising an inheritance tax strategy that works for you, and for your partner or spouse.
To start the conversation, find out more about the threats and opportunities, and find out what we might be able to do to reduce the anxiety around inheritance, get in touch today.
Ready to start the journey?
To get help with your accounts and start freeing up your time to focus on growth, talk to the Mayflower team today.