Bartletts Solicitors

Helping Chester & Wrexham Families & Business For Over 158 Years

Call Us Free  Phone  0800 988 3674  or Mobile  Mobile 0333 200 4465
  • Home
  • About Us
    • Wrexham Office
    • Matthews Lewis Hoole Solicitors
    • Our Commitment to Wales
    • Our Costs
    • Careers
  • Our Services
    • Personal Injury
      • Free Personal Injury Enquiry
      • Accidents At Work?
      • Accidents In A Public Place?
      • Animal Attack Personal Injury Claims
      • Children’s Accident Claims
      • Compensation Claims Settled
      • Construction Site Injury Claims FAQs
      • Cosmetic Surgery Compensation
      • Defective Product Injury Claims
      • Dental Negligence Claims
      • Head Injury Compensation Claims
      • Holiday Accident & Injury Claims
      • Hospital Negligence Claims
      • Industrial Disease Claims
      • Medical Negligence Claims
      • Military Injury
      • Motorbike & Cycling Accidents
      • Office Accident Claims
      • Road Accidents
      • Slips, Trips & Falls
      • Sports Personal Injury Claims
      • Warehouse Accident Claims
    • Housing Disrepair Claims
    • Residential Conveyancing
      • Conveyancing Fees
      • The Conveyancing Process
      • Buying Your New Home
      • Conveyancing Quote
      • How To Avoid Being Gazumped
    • Commercial Conveyancing
      • Landlord and Tenant
      • Business Leases
      • Buy To Let
    • Family Law
      • Divorce
      • Divorce In Older Age
      • Civil Partnership Dissolution
      • Frequently Asked Questions About Family Law
    • Wills & Probate
      • Wills
      • FAQs About Wills
      • Will Disputes & Inheritance Claims
      • Probate
      • Estate Administration
      • Prices For our Wills & Probate Services
      • Power of Attorney
      • What to do when a loved one dies – A legal guide
      • Trusts
      • Life Interest Trusts
      • Dependancy Claims
      • Planning For Long Term Care
      • Tax Planning
    • Fixed Prices For Motoring Offence Services
    • Agricultural Law
      • Farming Tenancies legal advice
      • Contract Farming/Share Farming Agreements
      • Capital Gains Tax
      • Planning Succession to Farms
      • Conversion of redundant buildings & barns & tax consequences
      • Environmental Law Issues
      • Development Options for Farm Land
  • Reviews
  • Meet Our Team
  • News
  • Contact

How Do I Reduce My Inheritance Tax Bill?

Here we talk about five ways to help reduce your inheritance tax bill

The importance of reducing your inheritance tax bill cannot be overstated as, by doing so, you will leave as much as possible to your loved ones – helping them achieve their hopes and ambitions in your memory.

The good news is that by planning ahead, you can cut your inheritance tax bill with relative ease and effectiveness – whilst also ensuring you can still enjoy your retirement.

What Is Inheritance Tax?

Inheritance tax is the amount of tax liable on a person’s estate when they die. It usually falls to the family to pay this bill and naturally reduces the amount of inheritance for loved ones.

Currently, an individual’s inheritance tax allowance is £325,000. This means that an estate valued up to this amount is not liable for tax. This allowance can be transferred between spouses, enabling a married couple to gift £650,000 tax-free when they die. Anything over this amount is subject to 40 percent inheritance tax.

There are a few exceptions to this so-called nil rate band – gifts between married couples or civil partners, and gifts to a UK registered charity, of any value, are not liable to inheritance tax. Certain business property and farming property are either not taxable or subject to a reduced rate of tax.

From 6 April 2017, there will be an additional nil rate band when a residence is passed on death to a direct descendant, increasing initially by £100,000 and then in annual increments of £25,000 up to £500,000 by 2021. Despite the inheritance tax allowance set to increase from next year, it’s still a good idea to take steps to reduce your tax bill so you can maximise the tax-free amount.

How To Reduce Your Inheritance Tax Bill

  1. Give Gifts

One way to avoid inheritance tax by giving away assets a minimum of seven years before you die. This means you can potentially gift family members tax-free with some planning. There are certain gifts which fall outside of the seven-year-survival rule too, including £3,000 every tax year, and gifts to individuals of £250.

  1. Make A Will

A Will is the best way to detail exactly how you want your estate to be divided after you’ve gone. You can state how your assets are to be distributed, and take advantage of the new residence allowance – by stating your home is to pass to your children you can avoid paying inheritance tax on it. Seek legal advice if you jointly own your home with your spouse, though, as different rules apply in different circumstances.

  1. Pension Payments

From April 2015, pensions are no longer subject to a 55 percent tax rate when the individual dies and the pot is passed to a loved one. If the saver dies before they are 75, the pension can be passed tax-free to a named loved one. So it makes sense to pay into your pension and to transfer other assets into your pension, as these funds and assets will no longer be included in your estate, and therefore won’t be subject to inheritance tax.

  1. Trusts

Placing assets or property into a Trust can be a tax-efficient way of gifting items to beneficiaries in the future, for example, leaving money in a Trust for your children on their 18th birthday or an amount to pay for your grandchildren’s education. Trusts are not part of your estate if you don’t directly benefit from them and so aren’t liable for inheritance tax. If assets don’t qualify for inheritance tax relief, the maximum you can pay into a lifetime Trust without paying tax is £325,000 every seven years. It’s important to seek professional advice on Trusts as there are many legal and financial factors to consider first.

  1. Life Insurance

If you’re worried loved ones won’t receive gifted assets at least seven years before you die and therefore would be liable to pay tax on them, you can take out a life insurance policy against an inheritance tax bill. By stating the insurance pay-out goes into a Trust, this amount would be tax-free and ensure loved ones are still taken care of financially even if your estate is subject to a big tax bill.

Inheritance tax can be costly for loved ones and create a great deal of emotional and financial stress at an already difficult time. By taking steps today to cut and plan for your tax bill, you will be able to leave as much as possible to the people you love.

For professional advice and guidance on your particular circumstances and the most effective ways for you to reduce your inheritance tax bill, please contact our solicitors on 0800 988 3674 or email advice@bartletts.co.uk

 

ShareShare on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Make A Free Enquiry

    Please prove you are human by selecting the Flag.

     

    What Clients Say

    Admin staff answered phone promptly and were always friendly and cheerful. My questions and concerns were always addressed promptly and response to was was swift. My conveyancer took great care to explain complex issues and ensure I understood. I felt he always had my best interests at heart.

    - Helen

    Read More>>

    Khalid and Stella were, friendly, professional and provided excellent service

    - David

    Read More>>

    We felt Khalid was Pro-Active and very helpful

    - Mr & Mrs Smith

    Read More>>

    Many thanks to Khalid and Stella for such efficient and friendly service

    - Helen

    Read More>>

    Khalid was wonderful – really has clients best interests at heart

    - Yvonne

    Read More>>

    I was very impressed by the speed and diligence with which my case was handled

    - Phyllis

    Read More>>

    From the first time I contacted Bartletts to the end of my claim my case was handled very professionally. I can’t speak highly enough of Mr M Farr and all the team. They kept me updated regularly and were always very helpful. I would like to thank them all for all the help and support I received. You went above and beyond.

    - Sharon

    Read More>>

    Martin handled my case ‘fantastically’. Always kept me in the loop, please with the outcome, would definitely recommend – Thank you!

    - Grace

    Read More>>

    Everything good, handled well – vary satisfied with the service

    - Janet

    Read More>>

    Excellent Service

    - Steve

    Read More>>

    "Your staff could not have done more for me and my husband. Always pleasant when I phoned or called in nothing was too much trouble."

    - Brenda

    Read More>>

    "Trevor Morris is extremely professional. Gave me great help as did all at bartletts. If you have any difficulties ask for the best barrister John Entwistle. All together a truly professional company."

    - Anonymous

    Read More>>

    Dear Nina - "I would just like to say a huge 'Thank you' to you and Khalid and the team for all your care and support with Mum's estate. You all made a very difficult time so much easier for our family."

    - Elaine

    Read More>>

    "I would like to take this opportunity to thank Ms Eliza Austin-Lea for her help and hard work. She was efficient, very professional and helpful at all times. She kept me informed throughout the process in a very concise manner; I have always felt very comfortable contacting her via email or speaking with her over the phone.
    ....Your support and kindness I shall always remember with much gratitude.
    Your service was absolutely fantastic; it is very rare to find this kind of great service. I will definitely recommend you to anyone else ..... "

    - Anonymous

    Read More>>

    "Martin Farr is personable and explained everything fully and answered all my queries"

    - Kelly

    Read More>>

    "I am really happy that I got chance to work with such prestigious organisation."

    - Tooba

    Read More>>

    "I salute Mr Martin Farr for his dedication  and professionalism towards my case. He is one of the most comprehensive people I come across. Thanks again."

    - Alex

    Read More>>

    "As an elderly lady, I though the whole process might be overwhelming, but it was very easy and straight forward. I would definitely use Bartletts again and would recommend them to anyone. Thank you for all your hard work."

    - Kathleen

    Read More>>

    "I had Catrin to start with who was excellent, left on maternity leave, and the case continued all to my satisfaction."

    - Gwynedd

    Read More>>

    "Really pleased with the service I received and would definitely recommend."

    - Jennifer

    Read More>>

    "Just wanted to send my thanks to Owain Dodd for all your time and help. Would recommend and use again."

    - Anonymous

    Read More>>

    "I was hit by a car while working as a refuse collector in Ellesmere Port I went to Bartletts in Chester, Frodsham Square, they were brilliant I was represented by a guy called Matthew I gave him the CCTV footage of the accident and he immediately agreed to take my case now on my part I was pretty awful I missed appointments I didn't reply to letters and I got lazy about it but Matthew persisted with me and didn't give up he sorted all necessary checks appointments and they even took me to an appointment in Manchester as I didn't drive, four years later (would've been less if I didn't be so passive regarding appointments etc) I was offered £3000 first Matthew said the offer wasn't good enough and that we should keep going, numerous offers later I walked away with £8000 minus their fees, which in my eyes was amazing ........ Bottom line they will stick with you even if your a pain and they will get results. Brilliant solicitors especially Matthew from the Chester office."

    - Mr LD

    Read More>>

    "Trevor, Thank you very, very much for all your help, I really appreciate the hard work that you've put into my case and I imagine it wasn't the easiest to deal with. The money you've managed to negotiate me is really going to help towards my girlfriend and mine's future. "

    - Mr NS

    Read More>>

    "Excellent service from Bartletts ... Handled quickly and all communications received promptly everything explained well. Thank you for all you have done."

    - SG

    Read More>>

    "Thank you so much for helping to sort out my Power Of Attorney. It has now put my mind at rest that my daughters won't have any problems should I need help."

    - Mrs P

    Read More>>

    "Dear Nina

    ...thank you so much for all your patience, professionalism and tenacity over the past months in your dealings with mum's estate. We really appreciate everything you have done to expediate mum's wishes...."

    - J&P

    Read More>>

    "Thank you for your letter,  I actually cried when I read it, thank you so much fighting on my behalf. I appreciate all your work and your professionalism.  Wishing you continued success for the future. "

    - Ms M B

    Read More>>

    " Dear Mr Morris
    Can't thank you enough
    On behalf of my mother, ...., I would like to thank you for taking on her case.  My mother is most grateful for the hard work you've done on her behalf, to achieve such a positive and favourable outcome.  We would, both, also like to extend our thanks to Mr Entwhistle for his work in the matter."

    - Mrs P

    Read More>>

    "...In writing I'd like to say how satisfied I was with the services of Rhiannon Edwards. ... we found her to be empathetic, focused, efficient and professional, and wish her well in what I am sure will be a successful career."

    - Mrs GM

    Read More>>

    "...I certainly made the right decision as I cannot speak too highly of the efficiency and sensitivity displayed not only by Mrs Sperring but also her secretary Alison Dowry and the rest of the team.  ... I would not hesitate to recommend your firm to others. Please convey my gratitude to them."

    - Mrs RK

    Read More>>

    "...From day one after contacting Bartletts they were professional and caring and helped me every step of the way. From helping me with benefits I did not know I was entitled to arranging medical appointments to gather evidence for my claim.

    They kept me informed and reassured every step of the way and put mind at rest as they handled all the communication with my employer and their insurance company.

    My claim was finalised and the outcome was substantial more than I expected. I can’t thank Trevor Morris and Bartletts enough for their help and would not hesitate to recommend them to anyone."

    - Mr DT

    Read More>>

    "...Throughout the process your professional guidance was impeccable leading to a successful conclusion. I would have no hesitation in recommending you & your company and am very happy to provide you with a testimonial for any prospective new clients. Thank you once again."

    - Mr PM

    Read More>>

    "...I would like to say since you have been fantastic. Since taking over my claim, you always kept me well informed and explained everything thoroughly and I was never left feeling I did not understand what was going on. Thanks again"

    - Syreeta

    Read More>>

    "...Saying thank you is just a small way of showing how she (and I ) feel. ... Your Steadying influence on Edith helped her through this ordeal   ... Yet again  Edith's thanks to you and all at  Bartlett's. We wish you well."

    - E & W

    Read More>>

    "I just wanted to thank you for settling my claim - I am absolutely over the moon!  Thank you so much for taking on my case, I really appreciate everything you have done. Thanks again."

    - Laura

    Read More>>

    "... I would like to say a very big thank you for your help with my claim.  ... All the best"

    - Graham

    Read More>>

    "Just a note to say thank you very much for representing us and helping to secure funds for Gary. He will thank you when he grows up : - ) 

    Great work, and thank you again."

    - Anonymous

    Read More>>

    "Just wanted to thank you for your swift action  & support in saving the house for us.

    You were very professional, quick acting, anticipating, easy to deal with & very knowledgeable

    Thanks again from the whole family." 

    - Anonymous

    Read More>>

    "I have very much appreciated your professionalism, kind consideration and patience in what has been a very difficult year."

    - G

    Read More>>

    "Just to say a big thank you for all your support and all the hours you have worked to bring this to an end which is very positive.
    Thank you again."

    - TB

    Read More>>
    Why Choose Us
    • Settled over 12,000 accident claims.
    • Recovered over £68 million in compensation.
    • A true No Win No Fee service.

    Read More>>

    © Bartletts Solicitors Limited 2021 – Offices in England and Wales

    • Careers
    • Contact
    • Unhappy With Our Service?
    • Legal
    • Cookies Policy
    • Privacy Policy