Inheritance tax solicitors

What is inheritance tax?

Inheritance tax is the tax to be paid on the estate that someone left behind. Debts and outstanding bills can be deducted from the gross estate value. Inheritance tax is usually 40% of the estate value above the threshold.

No inheritance tax is due if:

• The value of the estate is below the threshold of £325,000 (or £650,000 if the nil rate band of a deceased spouse or civil partner is available to transfer)
• Everything above the threshold of £325,000 is left to one of the following:
• Spouse or civil partner
• A charity
• A community amateur sports club

If you give your estate to your children or grandchildren, including foster children, adopted children or stepchildren, your threshold may be increased further.

Why should I consider legal assistance for inheritance tax planning?

An inheritance tax planning solicitor can advise you on how to share out your estate to avoid paying too much. There are different ways to reduce the amount of inheritance tax due:

• Giving out gifts while you are alive and surviving them by 7 years
• Leaving 10% or more to a charity in your Will
• When passing on business
• When owning woodland or a farm
• Creating a trust

However, what the best solution for you is depends on your estate, and your chosen beneficiaries. We can assist you with your questions on how inheritance tax might affect your own estate, feel free to contact us.

I've inherited an estate. Do I have to pay inheritance tax?

Inheritance tax is paid before you receive your share of the estate. It's the duty of the executor or administrator to report the estate value to HM Revenue and Customs and pay the inheritance tax bill from the estate before sharing it out.

Read our guide more information on the duties of an executor or administrator.

Do I have to pay inheritance tax if I receive a monetary gift during the donor's lifetime?

This is dependent on:

• the value of the gift
• the time you received it, in relation to the day the person who made the gift passed away
• the total amount of money they gifted to you or other beneficiaries.
• the value of the estate and the beneficiaries of the estate

For more detailed information, we advise you to read the government's website on inheritance tax.

Why choose Slater and Gordon?

Our specialist inheritance tax solicitors have helped thousands of clients handle tax matters with confidence, so you and your loved ones will never have to pay more tax than you need to. Our legal experts can help you with:

• Inheritance tax planning
• Setting up a tax-efficient trust
• Lifetime gifts
• Charitable donations
• Appealing inheritance tax decisions

Whatever your circumstance, we’re here to help. Our dedicated team can provide the legal expertise and advice you need to secure the inheritance you leave your loved ones. Speak to us today to learn more.

Estate administration fees

Our fees for a routine estate administration (including obtaining a grant of representation) are normally calculated by reference to the gross value of the assets in the estate at the date of death. They range from a minimum of 2.5% plus VAT for a simple estate to 4% for more complex/ high value matters.

Our full estate administration service includes

• Identifying and confirming the value of the assets and liabilities in the estate
• Calculating IHT and arranging payments on account as appropriate
• Completion of IHT accounts
• Applying for a Grant of Representation
• Encashment, sale and/ or transfer of assets to beneficiaries
• Payment of legacies and making distributions on account
• Interim and final estate accounts
• Managing estate income and capital gains tax liabilities and obtaining clearance certificates

So for an estate with a value of £450,000 our fee range – depending on complexity - would be between £11,250 plus VAT to £18,000 plus VAT.

In some cases our fees will be charged outside these parameters or by an hourly rate and this will be agreed with you in advance with a time and fee estimate given.