ESTATE PLANNING
Inheritance Tax planning
Navigating the complexities of Inheritance Tax planning and estate management is crucial to safeguarding your wealth for future generations. Roxburgh Financial Services specialises in providing expert independent advice in this intricate area, ensuring that your hard-earned assets are efficiently passed on to your loved ones according to your wishes.
Understanding Inheritance Tax
At its core, Inheritance Tax represents a levy on your estate, including all your properties, savings, investments, and other global assets. This tax primarily affects those inheriting your estate, excluding spouses or registered civil partners, and is payable before distribution to beneficiaries. Proactive, strategic planning is the key to mitigating the financial impact of Inheritance Tax.
Importance of early and effective planning
Effective estate planning goes beyond Inheritance Tax considerations; it’s about securing financial confidence and the ability to make impactful decisions. It enables you to support the people and causes dear to you through financial gifts, witnessing the benefits of your generosity during your lifetime. Beginning your Inheritance Tax planning early enhances your capacity to minimise its impact significantly, leveraging allowances and exemptions to protect your estate’s value.
Understanding the nil rate band
Inheritance Tax is a significant consideration in estate planning. The ‘nil rate band’ is the threshold below which an estate is not subject to Inheritance Tax. As of the 2024/25 tax year, this threshold remains at £325,000, which has been constant since the 2010/11 tax year and is anticipated to remain so until at least 5 April 2028. An estate exceeding this allowance may incur Inheritance Tax, though deductions for outstanding debts and funeral expenses are permissible.
The residence nil rate band addition
The ‘residence nil rate band’ (RNRB), introduced in 2017, provides an additional allowance for estates where the family home is passed on to direct descendants, such as children or grandchildren. This allowance stands at £175,000 for the 2024/25 tax year, effectively increasing the total Inheritance Tax allowance to £500,000 per individual or £1,000,000 for couples, provided the property in question has been the family residence at some point, even if sold after 7 July 2015.
Rules for married couples and registered civil partnerships
For those married or in a registered civil partnership, the ability to transfer assets to your partner without incurring Inheritance Tax is generally permitted. This allowance enables the surviving partner to utilise both tax-free allowances. Specifically, if the deceased partner bequeaths their entire estate to their surviving spouse, they can benefit from an Inheritance Tax allowance of up to £650,000.
Strategic estate and tax planning
Calculating the potential Inheritance Tax on an estate requires a thorough analysis, considering exemptions, the nil rate band, and future variables such as inflation and legislative changes. Roxburgh Financial Services UK excels in offering tailored advice, helping you establish a clear picture of your estate’s value and the strategies available to mitigate tax liabilities.
Our comprehensive approach to estate planning ensures that your assets are managed according to your specific wishes, providing peace of mind and financial security for you and your loved ones. Our team of specialists is dedicated to guiding you through every step of the process, from initial assessment to implementing effective tax planning strategies.
Seeing loved ones enjoy the fruits of your labour
At Roxburgh Financial Services, we stand as a beacon of expertise in Inheritance Tax planning and estate management. Our highly experienced team focuses on providing a truly personalised service. Our clients benefit from our deep understanding of tax legislation and commitment to maximising exemptions and allowances so your loved ones can enjoy the fruits of your labour.
Ready to take control of your estate's future and legacy?
Roxburgh Financial Services is here to assist you in navigating the complexities of Inheritance Tax and estate planning, offering solutions tailored to your unique situation.
Don’t wait until it’s too late to plan for your estate’s future. Contact Roxburgh Financial Services today to schedule a consultation and take the first step towards securing your legacy.