Inheritance Tax

Trusts, Inheritance tax & Estate planning are not regulated by the Financial Conduct Authority.

Inheritance Tax (IHT) not only affects the very rich, but other people may be liable without realising. Few taxes are quite as emotive – or as politicised – as IHT.

The structures into which you transfer your assets can have lasting consequences for you and your family. At PKS Associates, we can help you choose structures and trusts designed to protect your assets and give your family lasting benefits.

It is crucial to find out now if you potentially have an IHT liability – or could do so in future years. Historically, IHT planning used to be an activity confined to the very rich. However, growing affluence means that this is no longer the case. Even families and individuals with a relatively moderate level of wealth should consider planning ahead to ensure that their assets are passed on to their loved ones as efficiently as possible.

Property price increases have also dragged many middle-class working families into the IHT bracket. Safeguarding your own financial future is very important, and giving too much away could put this at risk.

At the moment, if your estate is worth more than £325,000 when you die, your assets may be subject to IHT. This means the value of your assets above the £325,000 threshold could be subject to IHT at 40%. Married couples and registered civil partners are allowed to combine their allowance, so they can pass on assets worth up to £650,000 before IHT is due. The current legislation now has an additional allowance called the residence nil-rate band (RNRB). The maximum RNRB is currently £175,000 and this amount is fixed until April 2028. Anyone with a net estate over £2M will begin to see their RNRB reduced by £1 for every £2 over this threshold. For further information contact us today.

IHT is a very complex area of financial planning, but IHT planning and obtaining professional advice could help you pay less tax on your estate.