Inheritance Tax Planning

Inheritance Tax (IHT) is charged on the value of an individual’s estate on the date of their death at a rate of 40%; however, each estate is also entitled to a “nil rate band” (a tax free sum).

Transfers to a surviving spouse and transfers to charities are usually free of IHT. Lifetime gifts to individuals given more than seven years before death usually pass free of IHT; in other words, after seven years the cumulative gift clock is “re-set”. In the event of death within seven years, IHT may become payable. The nil rate band is set first against any such gifts (oldest first) before the remaining balance is set against the death estate.

It is possible to mitigate inheritance tax by a variety of planning means. In broad terms, the main tools available comprise making the best use of exemptions authorised by the legislation or by intelligently using the nil rate band. At SMR Solicitors, we can advise on how to use these tools most effectively to reduce inheritance tax.

Trusts

A Trust is a fund containing assets that are for the benefit of a specific individual(s). They are governed by complex legal regulations and separate tax rules.

A Trust can be set up at any time during the lifetime of an individual to become operative immediately or upon their death.

At SMR Solicitors, we can provide trust administration services covering:

  • trust set up
  • winding up of trusts
  • trust accounts
  • arranging investment of assets
  • change of trustees
  • adhoc advice as required
  • book keeping
  • insurance
  • maintaining bank accounts
  • arranging distributions
  • payment of trust expenses
  • preparation of documents such as minutes and legislative deeds of apppointment.
Matthew Field
Selsey
01243 602832
Fiona Winskell
Head of Department
Chichester
01243 812322
Greg Woods
East Wittering
01243 674 313
Elizabeth Osmend
Solicitor
Selsey
Kathy Green
Chichester
01243 812316