Inheritance Tax on Death – Dealing with it.
Dealing with Inheritance Tax on death can be a tough job. The issue is that most people just don’t keep adequate records of their assets of what they have given away or put in trust. From the executors perspective the evidence trail can go back as long as 14 years. If they get it wrong there are substantial penalties payable by the executors. Personally. It is hard enough on the death of the first spouse. Imagine the issues when the second spouse dies. No one left to explain what happened! Our main Inheritance Tax page is here.
Inheritance Tax on Death – Planning Helps Reduce Tax and Executors Workload.
This is something we can help you prepare in advance for through our Peace of Mind Service – both to keep records and with our lifetime IHT Planning Service planning to reduce or cut out the eventual Inheritance Tax bill. Both are much better and cheaper than trying to sort it out after a death. Despite the continued availability of Deeds of Variation, many possible savings are no longer available then. But back to dealing with IHT after a death…
Inheritance Tax on Death – inexperienced Executors.
Many Probate firms have few dealings with estates subject to Inheritance Tax but we are fortunate in having a Tax Barrister on board. She can not only deal with the IHT aspects of the estate, but look for ways of reducing or deferring the IHT payment.
In some circumstances, a Deed of Variation can save substantial amounts of Inheritance Tax. Often it is prudent to avoid gifting to older children or relatives (perhaps wealthy or unhealthy.) Perhaps to skip a generation or even two entirely if they don’t need financial help.
If that generation has people who are in poor health or on benefits, then it may be better to help them through setting up a discretionary trust (we can help). To be fair, this sort of advice can be just as important where there is not an IHT issue. Not all probate practitioners have the vision or knowledge to review the estate from the point of view of its’ real aims and not strictly what is written on the paper.
Inheritance Tax on Death – Advance Planning is Best but….
No one really intends to create a big inheritance tax bill unnecessarily. However it is easily done if your Legal Planning is not regularly reviewed and updated. Equally, no one wants the local Council to inherit their estate as may happen if an elderly beneficiary promptly goes into long term care. Or if one of the beneficiaries is already on benefits. In some cases it is too late to do anything, in others there is a great deal which can be done.
At the end of the day, our fees are generally much less than most solicitors or probate firms who don’t have a Tax Barrister on board. At least with us you know that we are capable of reviewing the situation to see if we can save Inheritance Tax or improve the result for the beneficiaries in some other way.
So why not give us a call on 01323 406299 – we’ll be happy to have brief initial chat free of charge.