Inheritance tax solicitors

There are many ways to reduce inheritance tax, including making gifts to friends, family or charities, using trusts, and maximising the use of tax reliefs. Our inheritance tax solicitors and chartered tax advisers can advise you on the pros and cons of each option.

If you do not have family that you particularly wish to benefit, spending your money improving or enjoying your life is an excellent way of reducing the eventual inheritance tax bill, provided you make sure you leave enough in hand to meet your needs.

A trust is a legal arrangement where one or more people (trustees) hold assets for the benefit of others (beneficiaries). Trusts can help control how and when beneficiaries receive assets and can provide tax planning benefits.

Certain trusts can minimise inheritance tax liabilities by removing assets from your estate or by making use of reliefs and exemptions, such as business or agricultural relief.

Reasons you may wish to use trusts as part of your lifetime estate planning include:

Trusts can be particularly useful for complex or high-value estates, however professional advice is needed to ensure they are appropriate, legally valid and tax-efficient.

Regular reviews are essential, especially after major life changes or legislative updates, to keep your estate plan effective and compliant.

While trusts can be invaluable tools, misunderstanding or misusing them may cause unintended tax charges or disputes. Common pitfalls include:

• Believing trusts are only for the super-rich (trusts can benefit a wide range of estates)
• Assuming all trusts eliminate inheritance tax completely – many attract their own tax charges
• Overlooking the importance of regularly reviewing trusts to reflect legal or family changes
• Ignoring the administrative complexity and compliance requirements trusts entail

The simple answer is ‘yes’ but it is very complicated, and you will need to pay a full market rent for living in your home under the terms of a lease.

In addition, if you give away the property to your child and they become divorced or have other financial claims on their estate, your home will be at risk. Some capital gains tax will also be payable when the house is sold.

Using the family home in your estate planning is usually the last resort, however there are other effective planning solutions we may be able to offer.

If you wish to pass on your family business, you should take expert advice to ensure that it passes to the next generation without incurring unnecessary tax charges.

Business relief from inheritance tax can significantly reduce the taxable value of an asset. It is, however, essential to arrange your affairs in a way that ensures this valuable relief is used to maximum advantage.

We are experienced in helping business owners structure their affairs in a tax efficient manner. Our business succession plan consists of Wills and associated documents designed to maximise the benefit of business relief from inheritance tax, ensuring the inheritance tax payable on an estate, including business property, is minimised to the greatest possible extent.

We have a dedicated team of trust administrators who are responsible for the day-to-day running of existing trusts, including:

• Managing the trust assets
• Advising trustees on their duties and responsibilities
• Liaising with beneficiaries regarding their entitlements
• Advising charity trustees on regulation, compliance and structuring of projects
• Preparing annual trust accounts and tax returns
• Assisting trustees with their obligations under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)
• Advising on inheritance tax compliance during the lifetime of the trust and on cessation.

Our trust administrators are also able to act as a central point of contact for other professionals involved with trusts, such as investment managers, brokers, land agents and accountants.