tax

Inheritance Tax Planning

For each client that we work with, we complete a fact-finding exercise which shows us whether you can expect to have an Inheritance Tax liability. Currently the Inheritance Tax nil rate band for each person is £325,000

How can I plan for Inheritance Tax?

For individuals, and for each partner in a married couple, your threshold for inheritance is £325,000. We can help you mitigate your liability with advice on your situation. The value of your estate covers a broad range of assets, including your savings, property in the UK and overseas, shares, life assurance, pension, business assets and other investments. It also includes assets held in trust, and gifts made within seven years of death.

Taking into account any liabilities (such as mortgage, debts, credit cards and other loans) gives the value of your ‘net estate’- if this is more than the threshold for an individual's tax free allowance (currently £325,000), Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. See our Question and Answer section further down this page.

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Free Consultation

We offer a free, no obligation video consultation to discuss making a will for you, managing your estate, or any of our other services. Just enter your details and choose a time that suits.

Your Questions Answered:

Your estate is made up of your savings, property UK and overseas, shares, life assurance, pension, business assets and other investments, and including any assets held in trust and gifts made within seven years of death. This amount, less any liabilities (i.e. mortgage, debts, credit cards, other loans) gives the value of your “net estate”. If this is more than the threshold for an individual’s tax free allowance (currently £325,000), Inheritance Tax will be due at 40 per cent on the amount over the nil rate band.

If you are married, you each have £325,000 tax free allowance which in total makes £650,000 tax free allowance. If the size of your joint estate is above £650,000 then you will be taxed at 40 per cent. The benefit for married couples only is that on the death of the first spouse, they may not have used up their £325,000 tax free allowance. Therefore, the remainder can be added to the surviving spouse’s £325,000 tax free allowance which means that with effective Trust Planning and professional advice from our recommended financial advisors, Sikh Wills can help you to ensure you maximise your tax free allowances and protect loved ones from paying huge Inheritance Tax bills.

We work with every client to ensure that you understand how to make the most of your savings and investments. We work out a short assessment of the size of your estate at the time of preparing your Will. This shows both Sikh Wills and our clients how to mitigate Inheritance Tax liabilities, if any, and ways to effectively understand how inheritance tax planning works. If you were to die within a few months of making a Will, we would have some indication of the size of your estate and also what assets and liabilities you had at that time if we were to deal with probate matters on your behalf.

We work closely with our nominated financial advisors to provide all our clients with relevant information and solutions to all financial situations.

From 6 April 2012 people who leave 10% or more of their estate to registered charities can choose to pay a reduced rate of Inheritance Tax of 36%. Book a consultation and talk to us for further information about leaving gifts to charities.

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Wills

Clear statement of your wishes

Wills

Your Will is a clear statement of your wishes, and we can help draw up all the necessary documents for you.

trusts

Trusts

Your assets looked after with care

Trusts

A trust is a legal arrangement that allows assets such as property or money to be looked after for the benefit of the beneficiaries named in a Will.

tax

Tax Planning

Assess your liability

Tax Planning

For each client that we work with, we complete a fact-finding exercise which shows us whether you can expect to have an Inheritance Tax liability.

attorney

Lasting Power of Attorney

Appoint someone to handle your affairs

Lasting Power of Attorney

A Lasting Power of Attorney is a legal document that allows you to appoint a person to handle your affairs when you are unavailable or unable to do so.

probate

Probate

We act as professional executors

Probate

We act as professional executors, whether appointed under a Will or by the family of the deceased. We ensure the person’s final wishes are carried out with integrity and confidentiality.

plans

Sikh
Funeral Plans

Arrange your funeral

Sikh Funeral Plans

We can make all the arrangements for your funeral, and help you plan in advance for a funeral that matches your wishes.