Exceeding the iht limits without realising it

Relax knowing you’ve made the right choices when you get the help you need to navigate wealth protection

A clear way to understand how to protect your wealth

As an individual, you may be vaguely aware of ways to reduce your inheritance tax liability, or like many of the UK public, you may not be aware at all.

That’s where the IHT Bureau can help.

Our specialist expertise means we can help to highlight the areas of concern, providing mitigation and control of your assets to ensure you manage your estate now and in the future.

The service provides technical analysis and support to concerns you may have about your pension in retirement, making sure you have sufficient income in years to come and providing protection of your assets for your beneficiaries.

Here’s How We’ve Helped Our Clients

Fred and Wilma’s Story

Fred and Wilma have an estate valued at £3m, which includes their main residence worth £1m, with the balance made up of cash, investments and other property.

As their estate is worth more than £2m, they will start to lose their entitlement to the Residence Nil Rate Band (RNRB).

Their Wills leave everything to each other and then their children.

Inheritance Tax liability would be:

Taxable estate is £3m less the current nil rate bands 2x £325,000 = £650,000

£3m-£650,000 = £2,350,000 which would be liable to IHT @ 40% = £940,000 payable on second death.

NB: IHT has to be paid before the beneficiaries inherit the estate.

With planning help form IHTB we implemented a variety of solutions that initially helped to reduce the value of the estate and helped restore the RNRB, still provided Fred and Wilma access to capital and income, plus ensured that the potential IHT bill was reduced from £940,000 to below £200,000.

Understand your pension

Charles' Story

Charles was a successful businessman, he had built up substantial cash reserves in the business, to the point where his accountants were concerned that his trading company would be viewed by HMRC as an investment company and that he would lose his entitlement to Business Property Relief (BPR).

BPR rules mean that the value of shares held in your trading company are not liable to IHT.

IHTB introduced solutions that helped to reduce the cash balances held in the company, so preserving the BPR relief, but also providing an IHT exempt plan to preserve his and his families long terms wealth.

PAUL’s STORY

Paul was 73 years old, his pension fund exceeded £1.5m when he came to us, seeking a way to ensure his independent wealth was passed onto his son while maintaining his current investment strategy.

After investigation, we were able to provide an alternate solution for inheritance that avoided a potential tax charge at age 75. This plan ensured the best possible outcome for Paul and his son thanks to forward thinking and careful planning.

what’s next?

It all starts with a 30-minute consultation call. Our free initial meeting can be booked with a team member at your convenience. Get in touch to get started.