Inheritance Tax (Death Duty) Advice - The Law House

Inheritance Tax (Death Duty) Advice - The Law House

Also sometimes called ‘death duty’, inheritance tax can significantly reduce the value of any money or assets you pass onto your relatives in your will. At The Law House, our expert solicitors have vast experience in handling inheritance tax issues and can help you to leave as much of your estate as possible to your loved ones.

Why it pays to seek inheritance tax advice

Inheritance tax refers to the levy due on your property and other assets when you pass away. It has to be paid before probate is granted and your inheritance in released to your chosen beneficiaries. Unless you take appropriate steps to limit your tax liability, it can take a big chunk out of your estate and mean that your loved ones end up with a lot less than you might expect.

Currently, the inheritance tax threshold (also referred to as the ‘nil-rate band’) stands at £325,000 per person. This figures doubles to £650,000 for married couples if the first person who dies leaves the whole of their estate to their remaining partner. Any property or wealth that comes above this limit is subject to a tax rate of 40 per cent.

If you approach our expert lawyers for advice, we’ll make sure you understand all of the exemptions and reliefs on offer to you and help you to structure your estate in order to maximise the amount you can leave behind. As well as meaning that less of your estate will be taken in tax, this forward planning could give you peace of mind that you’re protecting the future finances of your family.

The new residence nil-rate band

In April 2017, changes were implemented to inheritance tax that could serve to benefit those who wish to pass their estate down to their direct descendants (in other words their children or grandchildren). As of the tax year 2017-18, an additional nil-rate band of £100,000 came into effect for those passing property in which they have lived onto a direct descendant. This is called the ‘residence nil-rate band’ (RNRB) and it applies to estates worth up to £2 million.

The RNRB is due to increase as follows:
2018-19: £125,000
2019-20: £150,000
2020-2021: £175,000

It’s important to be aware that this additional tax relief isn’t automatic. In order to take advantage of it, you may need to make amendments to your will. Our experts will be able to advise you on whether you are eligible for it and, if you are, they will guide you through the steps you need to take.

Our services

When you come to us for inheritance tax advice, you can rest assured you’ll benefit from a highly professional client-focused service. Our solicitors will ensure you understand your options and empower you to make the right decisions.

We can advise on all issues to do with inheritance tax. For example, we can explain how transferring money or assets to your spouse or civil partner may lower your tax burden, and talk you through giving small gifts of money or assets (up to a value of £3,000 each year) without incurring any tax bills.

If you would like to discover more about how we can help you, don’t hesitate to get in touch. You can call us on 020 3150 2525 or email us at sbedford@thelawhouse.com

We aim to provide a flexible service for our clients, so if you’re too busy to talk during regular office hours, we’ll be happy to arrange a discussion at a time that suits your schedule. This includes early in the morning, in the evening or at weekends.