Wealth Preservation Through The Generations


We all like to hang on to what we have, especially everything we have worked hard for. We also like to know that it will go to the people we want it to go to after we are gone.


You have worked hard to save your money. You have worked hard to make your money grow. But isn't galling to see your hard earned money not go where you want it to go to. Making a will is an essential part to this particular puzzle, but it is only a part.


So What Is Inheritance Tax?


Inheritance Tax is usually paid on an estate when somebody dies. It's also sometimes payable on trusts or gifts made during someones lifetime. The tax is payable at 40% on the amount over the Nil Rate Band (currently £325,000 2020/21) or 36% if the estate qualifies for a reduced rate as a result of a charitable donantion.


On the 6th April 2017 the Residence Nil Rate Band (RNRB) was introduced. This is an additional allowance for deaths occuring after this date. It is granted where a property that has been the deceased's home at some time is left to a direct decendant. It was originally introduced at a level of £100,000 increasing to the current level of £175,000 (6th April 2020) and from then on increasing by CPI. This allownace is reduced on estates over £2m and can be eroded completely depending on the size of the estate. There are huge benefits to this if used appropriately.


Since October 2007, married couples and registered civil partners can effectively increases the threshold on their estate when the second partner dies - to as much as £650,000 in 2020/21. The executors or personal representatives must transfer the first spouse or civil partner's unused Inheritance Tax threshold to the second spouse or civil partner when they die

If you have an estate which will suffer from Inheritance Tax, you may be resigned to the fact that the treasury, after taxing you on everything you earn, is going to take another potentially large slice of your estate before it goes to your loved ones.


How You Can Plan


There are many things you can do to help mitigate and in some cases avoid unnessecary tax.

At Tailored Wealth Financial Management we have specialised in Inheritance Tax planning since 2000 and ensured that our clients do not pay more tax than necessary without restricting their lifestyle. Part of this planning is making sure any reliefs that can be used are utilised before looking at the various trusts that can make a significant saving in this area.

This is a complex area so please get in touch if you are concerned about Inheritance Tax


Tax treatment varies according to individual circumstances and is subject to change.

Inheritance Tax Planning and Estate Planning is not regulated by the Financial Conduct Authority

The value of investments and pensions and the income they produce can fall as well as rise. You may get back less than you invested

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The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK

If you have a complaint about your Adviser or any financial advice you have received from your Adviser please contact us.

Quilter Financial Planning Complaints Department

Riverside House
The Waterfront
Newcastle upon Tyne
NE15 8NY

Email: QFPComplaints@quilter.com
Tel: 0191 241 0700


If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service

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