Inheritance Tax


The will-writing solicitors at Wills, Probate and Trusts provide dedicated services to clients in Chertsey, Woking and Surrey from centrally located offices in Weybridge. Inheritance tax is an area in which we excel. A will that makes use of the Nil-Rate Band (currently capped at £325,000) determines how assets transfer between spouses and equalises their estates. If a husband and wife die within two years of each other without establishing a Will Trust, parties to the will can enter into a Deed of Variation that subsequently inserts that trust into the will. A deed of variation can even be applied when there is no will and can alter the intestacy rules to plan for IHT issues.

We recommend that death benefits from life insurance and pension policies become part of the Will Trust instead of leaving them to form part of the estate. Making Outright Gifts of Capital to the value of £3,000 per year (or £6,000 in the initial tax year) helps to use up specified allowances.

Other forms of inheritance tax relief are as follows:

  • Small gift allowances to the value of £250 to any number of persons during the lifetime of the individual
  • Normal income expenditure
  • Gifts presented when a marriage takes place

Individuals may also wish to consider business or agricultural property relief when making a will. Making Potentially Exempt Transfers at the earliest opportunity increases the chances of individuals surviving the 7-year period that allows them to drop out of future tax calculations

All of the above exemptions apply irrespective of the size of the estate. However, those with larger estates can consider the creation of trusts that provide financial benefits to their children and grandchildren. Those paying private school fees should check to see if the school is a registered charity. Paying fees as a charitable contribution is a worthwhile arrangement because charities are fully exempt for inheritance tax.

Please contact our will-writing solicitors today. We are here to explain the implications of inheritance tax in a clear and definable language that helps our clients in the Weybridge, Chertsey and Surrey areas save money. We have specialists who can if necessary visit you and draw up a working plan to deal with IHT issues outside the planning we can do in your wills.

If you would like a free visit consultation, please contact us on 01932 855551.