The Inheritance Tax Calculator
Click ‘Start The Calculator’ to begin.
If you’d like to directly book a free consultation to discuss your IHT concerns and ask your IHT related questions right away, click ‘Book a Call’.
Welcome to the IHT Calculator
by Greenfields
An Inheritance Tax (IHT) Calculator is a valuable tool that can benefit individuals in various situations. It enables users to estimate the potential inheritance tax liability on their estate upon death. This can offer crucial insights into financial planning and estate management. For those concerned about passing on their financial assets to loved ones with an IHT liability, the calculator can provide clarity on tax implications, allowing them to make informed decisions to minimise tax burdens.
Using an IHT Calculator is beneficial for everyone, whether you are a single homeowner who has built up various investments over the years, such as Buy to Let mortgages (BTL) or Individual Savings Accounts (ISA), or a married couple with assets totalling over one million pounds. The calculator helps identify potential tax-saving opportunities and legal strategies and, by understanding how specific assets, gifts or trusts can impact your IHT liability, you can optimise your estate planning to ensure your family receive more of their inheritance, whilst minimising the amount received by HMRC!. By encouraging long-term thinking, the calculator can help you develop a more secure financial future by empowering you to take control of your financial affairs and safeguard your family’s financial future.
How it Works
An inheritance tax calculator works by assessing your estate value, deductions, and exemptions to estimate any potential tax liability that may occur after your death, providing you with valuable insights. When using the calculator, you should attempt to use accurate and up-to-date valuations on your assets. If you are unsure about any aspect, our experienced team are here to discuss this with you during your initial phone consultation.
5-Minute Calculator
When you use reliable valuations, the process of using the calculator takes about five minutes, making it a simple experience for extensive and beneficial outcomes.
Get Your Report
When you have completed the process, the calculator will collate your figures and provide an indicative figure of your IHT liability in today’s terms.
Access
Independent Advice
Some IHT calculators are intended to provide an understanding of a complicated topic and do not always incorporate more than an interpretation of the relevant laws. However, our team can provide you with independent advice so you can make measured decisions based on reliable information.
Get a Personalised Report
Delivered to Your Inbox
We provide a comprehensive report that supports you in making arrangements regarding your IHT liability and estate planning. Your report will be delivered straight to your inbox via email, so that you can review and continue with the process promptly and easily.
The sequencing plan for your emailed report involves:
- Immediate delivery upon completion.
- A booked phone call after receiving the report if you have any questions.
- A further provision of details about IHT and why it matters.
- Consulting with Greenfields to gain the benefits of working with an independent advisor.
- Follow-up phone call consultation.
The report will include relevant information detailing the following:
- Your assets
- Any liabilities
- An idea of your total net worth
- An indicative figure for your current potential IHT liability.
Why Use The Calculator?
Using an inheritance tax calculator for estate planning can be pivotal in gaining clarity on potential tax liabilities. It helps optimise the distribution of assets, identify legal tax-saving opportunities, and ensure a smoother and possibly larger transfer of wealth to beneficiaries. This can ultimately lead to preserving more of your hard-earned assets for the people you care about.
Analyses Your
Current Standing
The calculator will take stock of your present situation, which will enable you to ascertain if you currently have an IHT liability.
Calculates Your
Liability
If you have a liability, our calculator will work it out for you by applying broad assumptions to your collated figures. If you do not have a liability, the calculator will provide you with peace of mind.
Enables
Independent Review
Your case will be reviewed by an independent financial adviser after using the IHT calculator. You will have the opportunity to discuss your personal circumstances in more depth with no obligations attached.
Understanding IHT
Inheritance tax, also known as estate tax or death tax, is a tax that is levied on the transfer of assets, money, and property from a deceased person to their beneficiaries. This tax is typically based on the total value of the estate and our calculator applies English law of this tax.
Being aware of inheritance tax before your death is crucial for effective estate planning. The sooner you seek independent and professional advice regarding inheritance tax, the better you can prepare. Failing to understand the tax implications can result in a significant reduction of the intended inheritance for beneficiaries. By familiarising yourself with the relevant tax laws and exemptions, you can explore legal strategies to minimise tax liabilities, ensuring more of your assets go where you intend.
Proper estate planning involves evaluating the potential tax burden and implementing measures to maximise the transfer to beneficiaries. Employing the inheritance tax calculator can offer valuable insights, helping you make informed decisions.
IHT Calculator FAQs
IHT is based on the value of your estate and relates to the transfer of your assets to other people after your death, and on occasion whilst alive.
The IHT calculator will tell you whether you have a potential inheritance tax liability based on your estate value, deductions, and exemptions. It will take stock of your current situation, which can enable you to ascertain if you currently have an IHT liability. If you have a liability, our calculator will work it out it for you. If you do not, you will have peace of mind. Your case will be reviewed by an independent financial adviser, and you will have the opportunity to discuss your personal circumstances in more depth with no obligations attached.
You need to have approximate valuations of your assets and any liabilities before using the calculator. We may need to ask some further questions regarding factors such as your gifting history or information about any specialist investments of private business interests you may have.
Anybody can benefit from using our IHT calculator when estate planning.
The report will detail information on your overall wealth position and provide an indicative figure regarding your IHT liability.
Absolutely. Organise a phone consultation with us to begin the process.
A will is a legal document that outlines a person’s wishes for how their assets should be distributed after their death. Inheritance tax planning often involves making provisions in a will to reduce an individual’s inheritance tax (IHT) liability.
A will is a legal document that outlines a person’s wishes for how their assets should be distributed after their death. Inheritance tax planning often involves making provisions in a will to reduce an individual’s inheritance tax (IHT) liability.
A trust is a legal arrangement in which assets are transferred to a trustee, who manages the assets on behalf of the beneficiaries named in the trust. There are several types of trusts, and they can be used for various purposes, including reducing an individual’s inheritance tax (IHT) liability.
You can make gifts to your loved ones without incurring inheritance tax (IHT) by taking advantage of the various IHT exemptions and allowances available.
One of the most common ways to make tax-free gifts is by using the annual gift allowance. This allows you to give up to £3,000 each year to as many individuals as you like without incurring IHT. You can also carry forward any unused annual allowance from the previous year, which means you can give away up to £6,000 in a single tax year.
In addition to the annual gift allowance, there are other gift exemptions available, such as the small gifts exemption, which allows you to give up to £250 to as many individuals as you like without incurring IHT. You can also make gifts to help with living costs for a child or dependent relative, such as education or maintenance costs, without incurring IHT.
It’s important to note that any gifts you make will only be exempt from IHT if you survive for at least seven years after making the gift. If you die within seven years, the gift will be added back to your estate and may be subject to IHT. On some occasions the necessary survival period can rise to 14 years.
Life insurance can be used to reduce your inheritance tax (IHT) liability by placing your life insurance policy into a trust. This means that the proceeds of the policy are paid directly to the trust upon your death, rather than being paid to your estate.
By placing your life insurance policy into a trust, you can ensure that the policy proceeds are not considered part of your estate for IHT purposes. This can help to reduce the amount of IHT that your estate will be subject to.
There are different types of trusts that can be used for this purpose, including a bare trust, a discretionary trust, and a gift trust. Each type of trust has its own benefits and drawbacks, so it’s important to seek professional advice to determine which type of trust is best suited for your needs.
Start the Inheritance
Tax Calculator
Understanding inheritance tax can feel daunting, but it is important so that you can organise your estate well. The IHT is often considered a ‘voluntary’ tax, as there are many legitimate strategies that can be used to attempt to mitigate against it. However, it is a factor that can catch people out without clear knowledge of what is involved, to the detriment of their plans for their assets after they die.
The Greenfields IHT calculator is easy to use, and we provide, no-obligation discovery meeting (at our cost) with one of our independent financial advisers. We can discuss your objectives and begin to map out a route to help you to achieve them. We will assess and report on the various options and draw your attention to both the disadvantages and advantages of all options before providing you with our ultimate recommendations.