An individual’s Will and the use of Deeds of Variation potentially allow mitigation of Inheritance Tax liabilities on the person’s death.

Planning factors to minimise Inheritance Tax liabilities include:

  • Utilising the spouse exemption. This potentially allows assets to be passed without any inheritance tax charge to an individual’s spouse or civil partner.
  • The use of the Nil Rate Band and Transferrable Nil Rate Band. Suitable planning could include the use of a nil rate band discretionary trust and tax planning for the second spouse’s Estate.
  • Agricultural Property Relief and Business Property Relief. Ensuring the reliefs are maximised, potentially considering a transfer into trust.

The use of a Deed of Variation within 2 years of the individual’s death potentially allows the beneficiaries to minimise liabilities if the original Will has failed to do so. The Deed of Variation allows the distribution of the Estate to be changed by the beneficiaries.

If you would like to look at tax planning opportunities in more detail, please get in touch with our expert team.

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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