Inheritance Tax Plan

What is Inheritance Tax (IHT) Planning?

Inheritance tax is a tax paid on a deceased person’s estate (their property, money and possessions).

Normally, there’s no Inheritance Tax to pay if either:

• your estate’s value is below the £325,000 threshold
• you leave everything above the £325,000 threshold to your spouse, civil partner, a community amateur sports club or a charity

The standard Inheritance Tax rate is 40%. Only the part of your estate that’s above the threshold is charged.

Inheritance Tax is typically applied to wealth inherited through generations, degrading its value for you and your loved ones over time.

Inheritance Tax planning involves setting up proactive measures to ensure your estate is passed on to your beneficiaries in the most tax-efficient manner.

Inheritance Tax is primarily a voluntary tax that you can legitimately mitigate. Therefore, you do not need to worry about losing 40% of your wealth when you die.

All of this is possible with the proper professional counsel and estate planning.

Inheritance Tax preparation is a challenging subject to broach, especially if you have a lot of assets. Therefore, it helps to understand the law behind it and seek the best guidance possible.

The inheritance tax threshold is the amount above which inheritance tax becomes payable.

If the estate, including any asserts held in trust and gifts made within seven years of death, is less than the threshold, no inheritance tax is due on it.

At CTT Private Client we can help you to understand the inheritance tax plan and what it means for you. Get in touch with our team to learn more about our inheritance tax planning services.