Leaving an inheritance.
Future-proofing wealth one decision at a time
Tax treatment varies according to individual circumstances and is subject to change.
The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
Ensure your family’s financial security
What happens to someone’s wealth and assets after death is often complicated and there are many avenues you could go down. You may want to stay in control of how your wealth is distributed yourself, or you are concerned about the amount of Inheritance Tax your family might be liable for.
As an individual providing an inheritance, you want to ensure as much of your money goes to your family as possible, rather than being lost through unnecessary taxation. This allows you to help your family when you’re no longer here.
You want to make the right decision for the family members involved, and we will be there to help you make them.
Expert advice
This is how we provide solutions to your problems
Our expertise lies in treating our clients with care and compassion while providing expert guidance when they need it the most. We not only care about the future of our clients but also the future of your family and future generations.
With the right plan, your money can continue working hard for your loved ones when you’re no longer here. We’ll help you live the lifestyle you want, knowing your family’s future is secure.
Ensuring everything is up to date
When looking to leave an inheritance, we will work with you to ensure that your individual will is still appropriate and that the right people are named. As part of this, we can put you in touch with one of our trusted legal advisers. We will also clarify whether your Lasting Powers of Attorney are still appropriate. It’s all about getting your ducks in a row now to remove any complications further down the line and ensure the right people inherit your hard-earned wealth.
Structuring your investments
When making this big decision, you will have questions about where you should place your money. By explaining the options available to you and making recommendations, you can make a well-informed decision about what is right for your financial future based on your attitude to risk. We can ensure that your investments are structured in a way that maintains flexibility should your circumstances change.
Keeping in touch
Family dynamics can be complicated, whether it’s due to strained or blended relationships, business interests, or intricate assets. When you partner with us, we handle sensitive issues with care, ensuring that your wishes are respected and that the transition of wealth is smooth.
Frequently asked questions when leaving an inheritance
What is Inheritance Tax?
Inheritance Tax is a levy on the estate (property, money, and possessions) of someone who has died. It applies if the total value of the estate exceeds the available tax-free allowances (the nil-rate bands).
What is the current tax-free threshold (nil-rate band)?
Each individual has a nil-rate band (NRB) of £325,000 (as of current UK legislation in the 2025/26 tax year). This means that if the value of your estate is below £325,000, there is normally no IHT to pay. The NRB can be transferred from one spouse or civil partner to another, effectively doubling the allowance if unused by the first to pass away.
Depending on your circumstances, each individual may also have a residence nil-rate band (RNRB), which provides an additional tax-free allowance.
What is the residence nil-rate band (RNRB)?
This is an additional allowance that can apply when a person leaves their main residence to their direct descendants (such as children or grandchildren). The availability and exact amount depend on the size of the estate and other qualifying conditions. The maximum amount of RNRB per individual is £175,000 (as of current UK legislation in the 2025/26 tax year).
What is the Inheritance Tax rate?
Generally, Inheritance Tax is charged at 40% on the amount above the available nil-rate bands. However, if you leave at least 10% of your net estate to a registered charity, the rate on the remainder can be reduced to 36%.
Can I reduce Inheritance Tax by making gifts during my lifetime?
Yes. Gifts made during your lifetime (e.g., cash or property transfers) can reduce the size of your estate. These gifts are Potentially Exempt Transfers (PETs) and may become free of IHT if the person making the gift survives for seven years after making it. Some small annual gift allowances are also immediately exempt (for example, the annual gift exemption of £3,000 per tax year).
Are there any exemptions or reliefs available?
Transfers between spouses or civil partners are generally exempt from IHT (as long as both are UK-domiciled or the receiving spouse is UK-domiciled). Gifts to registered charities are also exempt from IHT.
Certain business assets and agricultural property may qualify for up to 100% relief from IHT, subject to conditions. Finally, smaller gifts (e.g., up to £250 to any number of individuals, or the annual £3,000) are often free of IHT.
Who is responsible for paying Inheritance Tax?
The executor (or personal representative) of the estate is responsible for submitting the IHT account and paying from estate assets. However, in certain circumstances (particularly with lifetime gifts), the recipient of a gift may become liable if there is not enough in the estate to settle the tax.
When does Inheritance Tax need to be paid?
Generally, IHT must be paid within six months of the end of the month in which the death occurs. If it remains unpaid by then, interest may accrue. In some cases, you can pay by instalments (e.g., for property) but interest may still be charged on the outstanding amount.
Don’t just take our word for it.
In all our negotiations, David has explained things in an easily understood manner, which has made a complex procedure much easier to comprehend. Having never had any experience of the world of finance, I’ve found him supportive and informative.
The whole experience has been professional, friendly and informative. At all times, I could ask the “daft question,” which was really important for me as I was unskilled in this area and needed to trust the person I chose.
David was very thorough and went through every fine detail regarding my private pension. He gave me lots of guidance and different options. David always went out of his way to help me and is extremely knowledgeable.
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Please note:
The Financial Conduct Authority does not regulate tax planning, Trusts, Estate Planning, Will Writing and Powers of Attorney and Inheritance Tax planning.
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