Solicitor of the Year Awards 2024
29 Apr, 2024
Posted By: FDC Law
What is Inheritance Tax?
Want to talk? Request ConsultationInheritance Tax (IHT) in England and Wales is a tax charged on the estate of a person who has died. It may be payable on money, property, and possessions left behind, depending on the total value of the estate and who inherits it.
An estate is usually taxed at 40% on the portion above the tax-free threshold (known as the nil-rate band), which is currently £325,000. In some cases, a higher threshold may apply, for example, when a home is passed to direct descendants such as children or grandchildren.
Inheritance Tax is not always due. Many estates fall below the threshold or qualify for exemptions, such as assets left to a spouse or civil partner, or gifts made to charities.
The tax is normally paid by the estate before assets are distributed to beneficiaries.
How can I reduce my inheritance tax?
Reducing Inheritance Tax requires careful planning and expert legal advice. With the right strategies in place, it is often possible to protect more of your wealth for the people you care about most.
Our solicitors can help you explore a range of lawful options to minimise your Inheritance Tax liability, including:
- Making use of available tax-free allowances and exemptions
- Structuring gifts effectively during your lifetime
- Creating or updating a will to ensure your estate is distributed in the most tax-efficient way
- Setting up trusts where appropriate to safeguard assets and manage future tax exposure
- Reviewing property ownership and family arrangements to reduce unnecessary tax burdens
How can a solicitor help with estate planning?
Every estate is different, which is why we provide tailored advice based on your personal and financial circumstances. Our aim is to give you clear, practical guidance and long-term peace of mind that your estate is planned in the most tax-efficient way possible. Our solicitors can provide advice on Wills, Power of Attorney and how to minimise your IHT.
Want to talk? Request Consultation
