Inheritance Tax And Reliefs Advice During Probate Brighton and Hove

The laws and stipulations surrounding inheritance tax are complicated, constantly changing and time-consuming to digest. As an executor, your duty to administer the deceased’s estate correctly is paramount – their life’s earnings and possessions should be protected and end up exactly where they wanted them to be. Our probate solicitors in Brighton and Hove can advise on inheritance tax and reliefs, giving you peace of mind and a tax-efficient legacy for beneficiaries.

What Is Inheritance Tax and Reliefs Advice?

If you have filled a tax self-assessment, you will know how complicated tax can be. Now, think of doing it on someone else’s behalf, but not knowing what assets they had, or where they are. This is what executors must do initially, before they even begin to calculate inheritance tax. If eligible for inheritance tax, parts of the estate will attract a fixed amount of inheritance tax, while others, such as trusts, can be structured during probate to be more tax efficient. Reliefs allow some assets to be passed on tax-free or at a reduced rate, but will not be granted unless applied for. Our probate solicitors will help you understand where the assets are, and how to calculate inheritance tax.

Why Use a Probate Solicitor for Inheritance Tax and Reliefs Advice?

No two sets of circumstances are the same when it comes to inheritance tax and probate. As the executor, you can decide whether to do this yourself, or with the help of a solicitor. Unless you are a tax expert, the task of locating, valuing, and categorising assets for inheritance tax purposes can be daunting, let alone understanding where you may be exempt. Common inheritance tax issues our probate solicitors help with are:

• Lifetime gifts and tapering reliefs
• Trusts and capital gains tax
• Nil rate bands and transfer of these
• Business property relief and private residence relief

Sometimes inheritance tax can be counter-intuitive, for example increasing the amount left to charity can reduce the overall inheritance tax bill, ultimately leading to larger sums of money for beneficiaries.

What Is The Inheritance Tax Threshold?

As the law currently stands, the first £325,000 of an estate is not taxed. This is known as the nil rate band. The threshold for this is not expected to change until 5 April 2021 (the end of the next tax year). Any assets over and above this nil rate band threshold are taxed at the rate of 40%. It is important to know that the nil rate band is transferrable in part or in whole between married couples, or those in a civil partnership. Our probate solicitors will advise if and how the inheritance tax thresholds will apply to you.