Inheritance tax planning & trusts
Your plans for the future are about more than assets. They are about your family, your wishes and what you would like to pass on.
Start a planning conversationA personal starting point
We offer inheritance tax planning and trusts as part of our wider financial planning conversations. Based in Edinburgh, we support individuals, families and business owners across the UK.
Understanding your circumstances comes first: the assets you hold, the people you would like to provide for and the arrangements you already have in place.
Tax and trust decisions can have long-term consequences. Information on this page is general and does not replace advice on your individual circumstances.
Inheritance tax planning considers how your estate may be affected by inheritance tax and how that fits with your wider wishes.
We start with your goals and existing arrangements rather than assuming a particular solution is suitable. The position can depend on your circumstances and the rules in force at the relevant time.
No tax saving or particular outcome is guaranteed. Tax rules and their interpretation can change.
A trust is a legal arrangement under which assets are held and managed by trustees for beneficiaries. Different trusts serve different purposes and bring different responsibilities.
Whether a trust is appropriate depends on what you want to achieve. Considerations can include control of assets, the role of trustees, access for beneficiaries and tax consequences.
A trust should not be treated as an automatic way to avoid tax. Legal and tax implications need appropriate consideration before any arrangement is made.
Understanding inheritance tax
Inheritance Tax (IHT) may be payable on your estate after you die. Your estate includes assets such as property, savings, investments, and personal possessions.
The standard Nil Rate Band (NRB) is currently £325,000 per person. Estates valued above the available tax-free allowances may be subject to Inheritance Tax.
With rising property values and increasing estate sizes, more families are finding that Inheritance Tax can have a significant impact on the amount passed on to loved ones.
In many cases, careful planning can help reduce the amount of Inheritance Tax payable, allowing more of your wealth to be passed on to your beneficiaries.
Typically, no Inheritance Tax will be due if:
For married couples and civil partners, any unused Nil Rate Band can usually be transferred to the surviving spouse or civil partner, potentially increasing the total available allowance to £650,000.
If you leave a qualifying residential property, or a share of one, to your direct descendants, such as children or grandchildren, your estate may also qualify for the Residence Nil Rate Band (RNRB).
The RNRB can provide an additional allowance of up to £175,000 per person, where the qualifying conditions are met. Any unused allowance may also be transferable between spouses or civil partners.
As a result, some married couples and civil partners may be able to pass on assets worth up to £1 million before Inheritance Tax becomes payable, provided all qualifying conditions are satisfied.
The RNRB begins to reduce for estates valued at more than £2 million, reducing by £1 for every £2 above this threshold. The point at which the allowance is fully withdrawn will depend on the amount of RNRB available to the estate, including any transferable allowance from a deceased spouse or civil partner.
The standard rate of Inheritance Tax is 40% and typically applies to the value of an estate above the available tax-free allowances.
Inheritance Tax planning can be complex, but taking advice early can make a significant difference to the amount ultimately passed on to your beneficiaries.
Our experienced advisers can help you understand your options and identify potential solutions tailored to your personal circumstances and objectives.
Inheritance Tax rules, thresholds and tax treatment depend on individual circumstances and may change in the future. The information on this website is for general guidance only and does not constitute personal tax advice.
Inheritance Tax Planning and Trusts are not regulated by the Financial Conduct Authority.
Before we speak
You do not need to send a list of assets or private family documents with an initial enquiry.
Inheritance Tax Planning and Trusts are not regulated by the Financial Conduct Authority.
No. A trust has legal and tax consequences, and trustees take on responsibilities. Suitability depends on your circumstances and objectives.
Yes. If you own a business, explain how it fits into your plans. We can also discuss our separate business protection services.
A considered conversation with your dedicated adviser.