If you are a high-net-worth individual and need advice on protecting and securing your wealth in the future, speak to a specialist Inheritance Tax lawyer at our law firm in North Yorkshire. Our solicitors can discuss Inheritance Tax needs for high-net-worth individuals.
Contact Us For High Net-Worth Legal Advice
Inheritance tax for high-net-worth individuals involves strategic planning to protect, grow and transfer complex assets in line with long-term personal and family goals.
If you need advice on protecting and securing your future wealth, our solicitors can discuss Inheritance Tax and inheritance planning strategies for high-net-worth individuals.
High value Inheritance Tax lawyers
Inheritance Tax planning for high-net-worth individuals is an incredibly complex business. The extensive assets of a high value estate, combining cash, businesses, stocks and shares, property portfolios, and precious personal items like jewellery and art, can quickly add up to an enormous Inheritance Tax bill.
At Crombie Wilkinson Solicitors, our expert team is on hand to provide clear inheritance advice and support your Estate and Inheritance Tax Planning.
We can discuss your options and arrange a inheritance tax solution that could reduce your Inheritance Tax bill, support future asset growth, and help ensure your beneficiaries receive the maximum amount possible.
We can also help you work out the net value of your estate for probate purposes. Probate can take longer for high-net-worth estates due to the complexity of assets involved, such as trusts, business interests, overseas property, and detailed tax considerations.
Inheritance Tax planning for a high value estate
When it comes to estate and Inheritance Tax planning for high-net-worth individuals, early preparation and careful attention to detail are the key to ensuring your heirs inherit the maximum value from your estate.
Along with the vast array of assets, the added tax complications of ever-expanding wealth, family businesses, international property, and complex family arrangements can all impact how your estate is structured.
For example, if you get divorced, you may want to rewrite your Will to reflect that change. Of if you remarry and want to ensure your children from a previous relationship are provided for after your death, that will require advance planning and specific wording in your Will.
Our experienced inheritance tax solicitors can assist in writing your Will and planning your estate to make the most of Inheritance Tax rules, lifetime gifting strategies and relief schemes, helping to protect your wealth for future generations.
We also advise on Inheritance Tax planning as part of wider estate and tax planning for high-net-worth individuals. This can include gifting assets such as property to family members as part of wider inheritance planning. We also work closely with independent financial advisers where needed to provide joined-up advice tailored to your personal circumstances.
Inheritance Tax on million-plus estates
Ultra-high-net-worth estate planning is designed for individuals with particularly complex or high-value estates, often involving bespoke structures, long-term legacy planning and multi-generational considerations.
For individual with estates valued more than £1 million, estate planning becomes increasingly important. Even with all the tax-free allowances available, Inheritance Tax may still apply depending on how the estate is structured.
There are three main situations to consider when working out how much Inheritance Tax may be payable on estates worth more than £1 million:
- Situation 1: If you’re single and haven’t used your ‘residence nil rate band’ (RNRB), you pay 40% of anything over the £325,000 threshold.
- Situation 2: If you have used the RNRB, you pay 40% on anything over £500,000.
- Situation 3: If you have inherited the above threshold from your spouse, you only pay 40% on anything over £1 million.
So, if you have an estate worth £2 million, you would pay 40% on either £1.675m as per situation 1, on £1.5m if you fall into situation 2, or on £1m if you fall into the third group.
For estates valued at more than £2 million, the RNRB (and any transferred RNRB) may be gradually withdrawn or tapered away even if a home is left to direct descendants. The RNRB will be reduced by £1 for every £2 that the value of the estate is more than the £2 million taper threshold.
However, it’s worth noting that the 40% rate can be reduced if you give 10% of your estate’s value to charity. It reduces the tax from 40% to 36%.
You can also reduce Inheritance Tax by using the seven-year rule: giving away gifts more than 7 years before your death. If you give your gift less than seven years before your death, you will pay up to 32% on the value (this value reduces the close to get to the seven-year threshold).
Using trusts to reduce Inheritance Tax
A trust is a legal arrangement where an asset is placed under the control of a trustee or group of trustees. Once transferred, the asset no longer forms part of your estate for Inheritance Tax purposes. Used smartly, trusts can greatly reduce your estate’s inheritance Tax Bill.
Depending on your circumstances, this may include discretionary trusts or life interest trusts, which can play an important role in high-net-worth Inheritance Tax planning.
Whether a trust is appropriate often depends on the value and complexity of your estate, your family situation, and your long-term intentions.
Contact us for high-net-worth Inheritance Tax issues
If you’re considering establishing a trust for your beneficiaries, speak to Crombie Wilkinson Solicitors.
Our experienced inheritance tax solicitors will talk you through the options for your high-value estate, including trusts, inheritance tax gifts, and other ways to reduce your inheritance tax bill.
