- Inheritance tax is normally charged at 40% on the part of an estate above the tax-free allowances.
- Everyone has a £325,000 allowance, plus up to £175,000 more when a home goes to children or grandchildren.
- Anything left to a husband, wife or civil partner is normally tax-free, and unused allowances can pass to them.
- It’s not just tax: pensions, life cover and who can act for you if you can’t all belong in the plan.
A consultation, not a product
Estate planning starts with a map rather than a sale. We sit down with you and list what there is: the home and any other property, the mortgage, savings, pensions, life policies and any business. Then we look at what would happen to it today, and where the gaps are.
Sometimes the answer is a new will and a policy written in trust. Sometimes it’s “you’re in good shape, check again in a few years”. Either way, you’ll have it in writing.
How inheritance tax works, in brief
Each person has a nil-rate band of £325,000. If your home (or your share of it) goes to your children or grandchildren, there’s an extra residence nil-rate band of up to £175,000. This extra band is gradually reduced for estates worth more than £2 million.
Whatever passes to a spouse or civil partner is normally exempt, and any allowance they don’t use can be passed on. So a married couple can, in the right circumstances, pass on up to £1 million before inheritance tax is due.
Most estates in the UK pay no inheritance tax at all. But house prices have risen while the allowances have stayed put, so more families are caught each year, often without realising.
Things people often miss
- Pensions. Check who your nomination forms name. Under the government’s current plans, most unused pension funds will count towards an estate for inheritance tax from April 2027.
- Gifts. You can give away £3,000 a year free of inheritance tax, and larger gifts usually fall outside your estate once you’ve survived seven years.
- Life cover not in trust. A payout can end up in your estate, adding to the tax bill and waiting for probate.
- If you can’t decide for yourself. A Lasting Power of Attorney lets someone you trust handle your money or health decisions. We can talk you through it [to confirm].