IHT receipts rose 14% to £6.1bn in the 2021/2022 tax year, the biggest single-year rise since 2015/16. This is not likely to slow down with the nil rate band not up for review until 2026 and property prices continuing to increase.
This is not a subject which it is easy to talk about but it is vitally important that you start to have conversations with your loved ones, about the size of your estate and the tax bill they will face if you do nothing.
The first priority is to make sure that your financial future is fully protected. That means that some families cannot take any avoiding action and the tax bill will just have to be paid.
However, my experience is that there is that many families can, with the use of Trusts and other fairly simple structures, significantly reduce the eventual tax bill whilst not putting their future at risk.
Where to start is the biggest issue for many families. A solicitor, with the inevitable fee implications, may well be needed at the implementation stage, but they are not the right place to start.
I have helped many families consider their options and alternatives, explain what they are doing to their children etc. and then source the right legal help when the time is right.
This is not something to put off, because many of the planning options take 7 years to be fully effective, with others needing just 2 years.
For the month of August ( normally a quiet time for me) I am offering a complimentary thirty minute Zoom consultation with up to six families who would like to explore whether this is something which should be receiving some serious attention. If you are interested just schedule a call here
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