Sorting out Inheritance Tax (IHT) can feel like a big, confusing task. But don't worry, our legal team is here to make it easy for you. We guide you through each part of the process so you can focus on what matters most.
At Switalskis, we're all about taking the mystery out of Inheritance Tax. Our team knows the law back to front, and we're here to help you at every turn.
We understand that sorting out taxes on your estate is a big deal. That's why we cut through the legal talk, keep you up to speed, and make sure things go smoothly.
When you get in touch with us, the first thing we do is figure out what you want to achieve with your estate in terms of Inheritance Tax. Do you want to reduce it, spread it out or perhaps donate to charity? We'll walk you through the steps you need to take so you'll always know what you should be doing.
We're with you every step of the way, demystifying the tax laws and handling all the paperwork. We take care of the tricky legal bits, allowing you to focus on your bigger picture - your future and your family's wellbeing. We understand that every estate is different, so our advice is specially tailored to suit your unique situation.
With Switalskis, you're not just getting legal advice; you're teaming up with people who genuinely want the best for you. We'll keep you in the loop, so you're never left guessing and can make well-informed decisions.
Inheritance Tax is a form of tax that comes into play when someone dies. Simply put, it's a tax on the estate - the money, property and possessions - that a person leaves when they die. If the total value of the estate crosses a certain threshold, Inheritance Tax will likely apply.
In the UK, the threshold is usually £325,000. If your estate is worth less than this, you probably won't need to pay any Inheritance Tax. However, the rules can get more complicated if you're passing on a family home, gifting money while you're still alive, or have other specific circumstances.
There are various ways to minimise the Inheritance Tax due on an estate. This could involve giving gifts to loved ones while you're still alive, putting assets into a trust, or even donating to charity. Each of these moves can help reduce the overall value of the estate that will be subject to Inheritance Tax.
At Switalskis, we're experts at simplifying complicated processes. Our team is on hand to guide you through the maze of Inheritance Tax planning. We'll help you understand your options and make smart choices, so more of your estate ends up where you want it to - whether that's with family, friends or good causes.
Our friendly and skilled legal team has a wealth of experience in helping people navigate Inheritance Tax. Here are three popular strategies often used:
First, there's the option of writing a will that's tax efficient. When you leave money and possessions to your spouse, that's tax-free. But if you don't plan properly, your children could lose out when the second spouse passes away. You may wish to include something called a discretionary trust in your will. This is especially useful for assets like property, which might rise in value quicker than the tax-free limit. Our specialists in wills are here to help you create a tax-efficient plan that could save your family valuable assets.
Another method is to create a trust while you're still capable of doing so. By putting assets into a trust, you could ring-fence them from Inheritance Tax. However, you'll need to outlive the transfer by seven years and not retain any benefit whatsoever in the case or asset transferred for the full tax benefits. But the upside could be substantial savings that stay in the family rather than going to the taxman.
You can give assets or money as gifts and potentially avoid Inheritance Tax. However, there are some rules you have to follow. Our team can walk you through the details. Just like with trusts, you'll need to be around for seven years after you make the gift for it to be tax-free.
Believing you're exempt from UK Inheritance Tax due to non-British citizenship could be misguided. In the context of this tax, your liability is determined by your residence, not your nationality.
So, what does that mean? If you own property in the UK that you call your permanent home, you could end up owing Inheritance Tax.
Now, the rules around this can be a bit of a maze. People often get tripped up, thinking they're in the clear, only to find out they owe tax. It's a tricky area, so you don't want to go it alone and hope for the best.
That's where we come in. Our experts can dig into your unique situation and let you know whether you're likely to need to pay Inheritance Tax and what steps you can take to minimise it.
If you're a UK resident and you own property abroad, it's likely that this property will be counted when figuring out how much Inheritance Tax you might owe in the UK. In short, being a UK resident usually means that your worldwide assets, including foreign property, are subject to UK Inheritance Tax.
However, tax rules can differ from country to country. So you might also have to pay some form of estate or Inheritance Tax in the country where the property is located. This could be complicated, especially if the two countries' tax systems don't play well together. There are some agreements between countries to prevent double taxation, meaning you won't be taxed twice on the same property, but it's not always straightforward.
Also, who you leave the property to can make a difference. Certain countries have specific rules about who you can leave property to, which might affect how much tax is due.
It's really important to get professional advice to navigate these tricky waters. Both UK law and the law in the foreign country will need to be considered to work out the best way to handle the property in your estate.
You can update your will to make it more tax-efficient. This is actually a smart move to make sure that your loved ones get the most from your estate without losing a substantial to Inheritance Tax. Here's how you can make your will more tax-friendly:
Updating your will can certainly make it more tax-efficient; however, we'd strongly recommend speaking to a solicitor skilled in wills and IHT planning to make sure that any changes comply with the law and truly benefit your loved ones.