Bespoke Inheritance Tax Solutions at Abacus Wills & Trusts
At Abacus Wills and Trusts Global, we pride ourselves in being one of the very few Estate Planning companies that provide bespoke Inheritance Tax solutions.
Depending on the size and type of Estate, we will structure solutions to suite your needs. From company structures to various types of Trusts, including Employee Benefit Trusts. Hence overcoming the 7 year rule, that is, no need to wait for Severn years to eliminate Inheritance Tax.
Frequently Asked Questions
How do I know if my estate will actually be liable for inheritance tax in the UK?
Your estate is likely to be liable for inheritance tax if its total value, after debts, exceeds £325,000 (or £500,000 if it includes your main home left to direct descendants), rising to £1 million for married couples and civil partners.
What legitimate ways are there to reduce inheritance tax on my estate in the UK?
Legitimate ways to reduce UK inheritance tax include using annual gift allowances, gifting assets and surviving seven years, leaving assets to a spouse or charity, and using trusts or agricultural and business property relief where applicable.
Is inheritance tax planning only worth doing if I’m wealthy?
Inheritance tax planning isn’t only for the wealthy; anyone with a home and modest savings can exceed the £325,000 threshold once property values are taken into account, making planning worthwhile for many families.
How does gifting money to my children affect inheritance tax in the UK?
Gifts to your children are generally free of inheritance tax if you survive seven years after making them; if you die within that period, the gift may still be taxed on a sliding scale.
What’s the seven-year rule for inheritance tax and how does it actually work?
The seven-year rule means gifts you make during your lifetime fall outside your estate for inheritance tax purposes if you survive seven years after making them, with tax tapering down on gifts made three to seven years before death.
Can a trust genuinely help reduce inheritance tax, or is that a myth?
A trust can genuinely help reduce inheritance tax when structured correctly, by moving assets outside your estate, though trusts have their own tax rules and aren’t a guaranteed way to avoid tax altogether.
How does inheritance tax planning work for married couples in the UK?
Married couples and civil partners can pass assets to each other free of inheritance tax and combine their nil-rate bands, giving a couple up to £1 million in tax-free allowance when a family home is involved.
What happens to inheritance tax if my house has gone up a lot in value?
If your house has risen significantly in value, more of your estate is likely to fall above the inheritance tax threshold, making planning such as gifting, trusts or reviewing ownership structures more important.
Should I start inheritance tax planning now or wait until I’m older?
It’s generally better to start inheritance tax planning as early as possible, since strategies like gifting rely on surviving seven years and become less effective the later they’re put in place.
How often does inheritance tax planning need to be reviewed in the UK?
Inheritance tax planning should be reviewed every few years, and after any major change such as a rise in property value, a new relationship, or a change to tax rules or allowances.
Enquire Now About Inheritance Tax Planning
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