Estates

Inheritance tax

We can help you prepare  the inheritance tax return, including liaising with your solicitor over the deceased’s financial matters, preparing valuations and completing the return itself. We will support you in any negotiations with HMRC and checking the final tax assessments.

Tax Returns

Tax Returns may need to be completed up to the date of death and the resulting tax liabilities agreed. The tax affairs of the estate will also need to be settled for the period of administration. In some circumstances this can be done informally but, otherwise, Tax Returns will be needed.

An estate pays only basic rate tax during the administration period. The income of the estate is attributed to beneficiaries to the extent that they receive any payment or transfer of assets from the estate. We will produce a tax certificate for each beneficiary for each tax year, for inclusion on their personal Tax Return.

Estate register

If a Tax Return is needed for the Estate, it will need to be registered on the Government Register. If you wish, our team will handle this for you and maintain the estate register on your behalf. 

Administration

The lengthiest phase can be realising and distributing the assets and paying liabilities. Great care is vital in this phase because you could be held personally responsible if you get it wrong. 

Minimising tax liabilities is important and ensures assets are passed to beneficiaries in a tax efficient manner. Sometimes transferring assets to beneficiaries prior to sale can save tax.

It is not unusual to find that a death in the family brings tensions to the surface and it may disappoint some beneficiaries if particular assets they were expecting to inherit have been left to someone else or sold to pay liabilities. We will act as a buffer in these situations so that the estate is fairly and professionally handled and tensions are diffused. We will also maintain the financial records and produce administration accounts or less formal statements to account for your stewardship.

If all or part of the estate is left in trust, we can register the trust at the appropriate time and provide our full range of trust services thereafter.

Post-death variations

Variations may be desirable if a beneficiary wants to give some or all their inheritance to younger generations.  Beneficiaries might want to divert some of their inheritance to a trust or to rearrange or wind up a trust made under the Will, or occurring under the intestacy rules. We can advise on the tax efficiency of post-death variations and ensure that any formal tax elections are made in the correct form.

Estate planning

In an ideal world, IHT liabilities on death would be minimised during your lifetime. The different family structures we see today make it even more important that anyone over 18 years of age has a valid and considered Will.  We can work with your solicitor and other advisers to ensure you leave your estate as tidy and as tax efficient as possible.

Pension funds are not normally part of your estate, but they can play an important role in tax planning as new flexibilities allow funds to pass to beneficiaries tax-free in certain circumstances. Some life assurance products can also have tax benefits, although you should view these chiefly as investment products rather than IHT planning tools.

Lifetime planning is a matter of balancing liabilities to different taxes, as saving one tax may cause liability to another.  However, a liquidity event, such as an inheritance or selling your company, may give you more flexible options to plan for a tax efficient future.

Whatever your situation, we will help you to build your plan.