Inheritance tax (IHT) is a tax levied on a person’s estate when they die and on certain gifts made during an individual’s lifetime. By planning ahead, inheritance tax – which would be paid the receivers of your estate – can largely be avoided or massively reduced.

Inheritance tax is a complex subject and can be expensive for you and your family. Under UK law, your worldwide assets are subject to a 40% IHT. However there is an exception for the first £325,000, and this figure would be doubled if you are married or have a civil partner.

The total amount of the inheritance tax you will have to pay depends on a few factors. These include your domicile, marital history, and location of assets. Additionally, the composition of your estate also has a big say in the matter. It tends to get fairly complex fairly quickly. Our expert tax advisors can help you navigate IHT and plan your estate to minimise liabilities.

Specialist advice for planning your estate efficiently

You can minimise the tax bill on your estate by structuring it efficiently. This will allow your loved ones to receive more of your wealth upon your death. This will also reduce the need for your beneficiaries to sell your assets to cover the inheritance tax. Consequently, this will also minimize the amount of paperwork for them.

Praxis inheritance tax specialists are here to assess your exposure to inheritance tax. This calculation is done upon reviewing your finances and family circumstances.

Preserving the value of your estate

Praxis advisors will thoroughly understand your wishes and personal circumstances. Praxis will help you structure your finances tax by using a few efficient methods. By assessing the exemption of your spouse, Praxis will ensure that you do not have to pay as much IHT.

This also applies to other civil partnerships as well. Furthermore, it is our key goal to provide you with a nil rate band on your residence but this is only applicable if your estate qualifies for it. Professional advice on tax and estate planning from Praxis will ensure that your wishes are respected and provide peace of mind to your heirs.

Will & estate planning

If an individual dies without drawing up a will, they could leave their loved ones with a lot of problems. In the case of intestacy, your heirs are responsible for sorting out your estate, and this could lead to problems, or be allocated in a way you did not intend. 

By preparing a will you can allocate each part of your estate correctly. Our advisors and estate planners can draw up a will that ensures your estate is structured correctly. They will also offer you advice on tax planning to ensure your will is as tax efficient as possible. If you have an existing will, we recommend that you revisit it regularly. You can also have our professionals go through it to ensure it is structured correctly. This will allow your loved ones to get the most benefits out of your estate.

Varying wills that are disputed or inefficiently structured

Wills can oftentimes be changed upon the death of the estate owner. This is on the condition that all of the affected beneficiaries agree to it. It is usually done via the process called Deed of Variation and is legally binding.

Praxis can provide assistance to ease all of your estate-related issues. Our highly skilled advisors can recommend the necessary changes that need to be made to the will. These changes will improve tax efficiency and assist with the drafting of the deed. For a consultation session, please get in touch.