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Inheritance tax, explained
Also known as IHT, inheritance tax is a tax owed on your estate (the sum value of property, money, assets etc.) after you die. There is a tax-free amount of £325,000, with a further £175,000 (as of August 2023) if your primary residence is part of your estate, and it’s passed onto a child or grandchild.
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Anything over this threshold is taxed at 40%, which means those inheriting large estates may find themselves with a rather significant tax bill. This is often paid out of the estate value or through a specialised loan.
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At Lloydbottoms, we support individuals in planning their estate. Our goal is to help you manage your estate, and ensure those you care about can enjoy the full benefit of your will.
Exemptions and reducing your bill
As with many areas of tax, there are some exemptions. If you decide to leave your whole estate to a spouse or partner, or donate assets to certain charities, these beneficiaries won’t be taxed.
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You can also reduce the tax burden on your loved ones by gifting assets in advance, or setting up trusts although you could end up paying more tax overall.
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The team at Lloydbottoms will be more than happy to discuss your options, so that you can ensure your loved ones and other beneficiaries can enjoy as much of your estate as possible.
Planning for the future
At Lloydbottoms, we believe it’s never too early to start planning your estate. We offer personalised inheritance tax advice and support. A legally binding will ensures that, when you pass, your assets are fairly and correctly distributed to individuals and causes that you care about. While we don't get directly involved with will making, we can offer all the inheritance and tax advice you need.
Discuss inheritance tax with our team today. Call us now,
on 0117 957 3537.