After a lifetime of hard work and paying taxes, you want to ensure your wealth benefits your loved ones—not the taxman. Whether you wish to support your children, grandchildren, or other relatives, effective estate planning can help reduce inheritance tax liabilities and ensure your assets are passed on as intended.
At Greenfields Financial Management, we provide expert guidance to help you navigate the complexities of inheritance tax planning. While you may have heard suggestions like ‘gifting your home’ or ‘placing assets in trust,’ these decisions require careful consideration and professional insight. Our experienced team will work with you to maximise available allowances, structure your assets strategically, and make the most of IHT-friendly investments. By aligning our approach with your goals, we’ll help you preserve more of your wealth for future generations.
While inheritance tax (IHT) might be unavoidable in some cases, we’re here to help ensure it doesn’t take more than it should. Studies show that up to 30 million people are paying more tax than necessary, and we’re committed to making sure you're not one of them. With the right management, you could save a substantial amount, which your family or loved ones could use to build their future.
While IHT is typically charged to your estate after your passing, there are situations where it could apply during your lifetime. However, with careful planning and an experienced financial team by your side, you may be able to reduce your liability without resorting to costly and complex trusts. You’ve worked hard for your assets—now it’s time to ensure they work for you.
Inheritance tax is often referred to as ‘Britain’s most hated tax,’ but with careful planning, it doesn’t have to be something you or your loved ones worry about. There are various ways to structure your assets to reduce or even eliminate this liability. From making use of exemptions and allowances to strategic gifting and IHT-efficient investments, taking proactive steps can make a significant difference.
The key to effective inheritance tax planning is starting early and having a well-thought-out strategy in place. We provide tailored solutions to help you manage your wealth efficiently, ensuring that more of your hard-earned assets go to your chosen beneficiaries rather than the taxman. With the right approach, inheritance tax is far from inevitable—let’s work together to take control of your financial future.
While IHT calculators can provide a general estimate, they lack the personalisation needed for effective planning. For meaningful inheritance tax management, you need tailored, one-on-one guidance that takes your unique circumstances into account. At Greenfields Financial Management, we offer just that.
Our approach is simple: First, we help you create a plan, then we assist in executing that plan, tailored specifically to your needs. Everyone’s financial situation is different, which is why we take the time to craft an approach that fits you. Whether you want to leave a legacy to your children, grandchildren, or any other loved ones, we’re here to help you make that a reality—whenever the time comes.
Our priority is helping you make informed decisions with confidence, knowing that your future aligns with your goals and aspirations. With a clear plan in place, you can enjoy today while securing tomorrow.
Careful planning ensures that more of your wealth goes to your loved ones, rather than being lost to inheritance tax.
Without a plan, your beneficiaries may need to sell properties or investments to cover tax liabilities. Strategic tax planning helps protect these valuable assets.
Inheritance tax can put family-run businesses at risk. Proper planning helps ensure continuity, allowing future generations to carry on your legacy.
A well-structured estate plan reduces complexity, making it easier and less stressful for your beneficiaries to manage their inheritance.
Knowing that your estate is structured efficiently gives you confidence that your loved ones will be financially secure and that your wishes will be honoured.
Careful planning ensures that more of your wealth goes to your loved ones, rather than being lost to inheritance tax.
Without a plan, your beneficiaries may need to sell properties or investments to cover tax liabilities. Strategic tax planning helps protect these valuable assets.
Inheritance tax can put family-run businesses at risk. Proper planning helps ensure continuity, allowing future generations to carry on your legacy.
A well-structured estate plan reduces complexity, making it easier and less stressful for your beneficiaries to manage their inheritance.
Knowing that your estate is structured efficiently gives you confidence that your loved ones will be financially secure and that your wishes will be honoured.
Planning for inheritance tax (IHT) can help ensure your loved ones receive the maximum benefit from your estate. By understanding tax thresholds, exemptions, and planning strategies, you can take steps to reduce your IHT liability. In this guide, we answer common questions about inheritance tax and explore ways to protect your wealth for future generations.
Inheritance Tax (IHT) is a tax applied to the estate of a deceased person in the UK. It is charged on the total value of assets exceeding a set threshold, currently £325,000. Any amount above this threshold is taxed at 40%, though various exemptions and reliefs may reduce the amount owed.
IHT must typically be paid within six months following the end of the month in which the person passed away. In some cases, the executor may spread payments over up to 10 years, but interest will accrue on any outstanding amount. Late payments may also incur penalties.
The executor (or administrator, if no will exists) is responsible for valuing the estate and ensuring the correct IHT is paid to HM Revenue & Customs (HMRC) within the deadline. If the estate includes a trust, trustees may also be liable for IHT. Additionally, recipients of lifetime gifts may be responsible for any applicable tax.
IHT is charged at 40% on estate values exceeding £325,000. However, the residence nil-rate band may increase the tax-free threshold to £1 million for married couples who pass a family home to direct descendants.
IHT may apply to various assets, including:
Bank accounts and investments
Property (including second homes and rental properties)
Personal belongings (e.g., jewellery, artwork, vehicles)
Business assets and private company shares
Life insurance policies (unless held in trust)
Gifts made within 14 years of death that exceed exemption limits
IHT rules can be complex, so professional advice—such as from our team at Greenfields Financial Management—can help ensure proper asset valuation and tax relief applications.
Several strategies can help lower IHT liability, including:
Making lifetime gifts – You can gift up to £3,000 annually tax-free, plus small gifts of £250 per recipient.
Using trusts – Placing assets in certain types of trusts can reduce IHT while retaining some control.
Leaving a charitable donation – Charitable gifts are exempt from IHT and may reduce your taxable estate.
Claiming Business Property Relief – Owners of qualifying businesses may receive up to 100% IHT relief.
Utilising the residence nil-rate band – If you leave a home to direct descendants, you may benefit from a higher IHT-free threshold.
Given the complexity of IHT rules, seeking expert financial advice can help you implement the most tax-efficient strategies.
A will is a legal document outlining how your assets should be distributed after death. A well-structured will can help minimize IHT and ensure your estate is passed on according to your wishes.
A trust is a legal arrangement where assets are managed by trustees for the benefit of designated individuals. Certain trusts can remove assets from your taxable estate while maintaining some control over how they are used.
You can reduce IHT liability through various tax-free gifting allowances, such as:
Annual gift exemption – Give up to £3,000 per year without IHT. Unused allowance can be carried forward for one year.
Small gift exemption – Gift up to £250 per recipient annually.
Regular gifts from income – If you make habitual gifts from surplus income, they may be exempt.
Gifts for living expenses – Contributions toward a dependent’s education or living costs may also be exempt.
However, if you pass away within seven years of making a gift, it may still be subject to IHT. In some cases, this timeframe extends to 14 years.
Yes, by placing a life insurance policy into a trust, the payout will go directly to beneficiaries outside of your estate, avoiding IHT. Different trust types exist, so professional guidance is essential to determine the best option.
To reduce IHT when passing on property, you may consider:
Using the residence nil-rate band if leaving a home to direct descendants
Gifting property during your lifetime (considering the seven-year rule)
Borrowing against your home to reduce taxable equity
Placing property in trust to manage tax exposure
Since property-related IHT planning has specific conditions, expert advice is highly recommended.
The sooner, the better. Ideally, IHT planning should begin years in advance to take full advantage of tax-efficient strategies. However, even last-minute measures can still help reduce liability.
To make sure your wishes are followed, consider:
Making a will and keeping it updated
Using trusts to specify asset distribution
Regularly reviewing beneficiaries on financial accounts and policies
Communicating your plans with family members to avoid disputes
When selecting an IHT advisor, look for:
Proper licensing and accreditation
Experience with inheritance tax and estate planning
A strong reputation and client reviews
Clear communication and transparency
At Greenfields Financial Management, we provide expert guidance tailored to your circumstances, helping you secure your financial legacy.
Key documents include:
A valid will
Trust documents (if applicable)
Financial statements and asset valuations
Records of lifetime gifts
Life insurance policy details
Business ownership documents (if relevant)
Tax returns
A professional financial planner can help ensure all necessary paperwork is in place.
Tax laws change frequently, and new regulations can impact IHT thresholds, exemptions, and reliefs. Keeping up-to-date and consulting a financial expert—like Greenfields Financial Management—ensures your estate planning remains effective.
Regularly review your estate plan, especially after major life events like marriage, the birth of a child, or changes in tax law. Consulting with a professional ensures your strategies remain relevant and efficient over time.
Helpful resources include:
Gov.uk – Official UK government guidelines on IHT thresholds, exemptions, and property rules.
Financial advisors – Professionals specializing in estate and tax planning.
Legal professionals – Experts in wills, trusts, and probate law.
At Greenfields Financial Management, we provide comprehensive IHT planning services to help you navigate complex tax laws and secure your financial future.
Whether you’re looking for details on how things work, what to expect, or general guidance, we’re here to help! Get in touch with our friendly team today!
