Inheritance Tax Planning

Nestled in the heart of Swindon's Old Town professional district, MMB Finance is an independent financial adviser with a rich history dating back to 1996. Our commitment is to cater to your unique financial needs by offering comprehensive advice across all facets of your finances, including estate and inheritance tax planning.

Understanding Inheritance Tax (IHT)

Inheritance Tax (IHT) is becoming a pivotal consideration for many, especially as our society witnesses longer life expectancies and burgeoning personal wealth, primarily driven by escalating house prices. IHT is levied on the portion of an estate's value which exceeds the nil rate band, applicable during asset transfers either in one's lifetime or posthumously. Given its significance, it is imperative to integrate IHT considerations into your overall financial strategy.
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Inhertitance Tax Planning

The MMB Finance Approach To Inheritance Tax Planning

Local Expertise With The Personal Touch

MMB Finance is not just another financial advisory firm. Our deep-rooted understanding of Swindon and its neighbouring regions, including Gloucester, Cheltenham, Cirencester, Bristol, and Bath, sets us apart. In an era dominated by digital consultations, we take pride in being among the few inheritance tax advisers in the region, which values face-to-face meetings, ensuring a personalised and comprehensive understanding of your needs, taking into account the local economy.

Our approach to inheritance tax planning focuses on you and your wishes, which may change over time. It is our aim to be there for you to give you the best possible IHT advice at all times.

Inheritance Tax: An Optional Tax?

With meticulous planning, IHT can transition from a mandatory tax to an optional one. Essentially, inheritance tax is a tax clients might choose to pay, usually as a trade-off for retaining control over their assets during their lifetime. There are two primary strategies for dealing with potential inheritance tax liabilities:
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    Asset Gifting: One could consider transferring assets above the nil rate band and then outliving the subsequent 7 years. While this might sound straightforward, it is usually not an option for most people,as it involves relinquishing control over significant assets like one's home. If this route is chosen, such gifts are categorised as potentially exempt transfers (PETs) or chargeable lifetime transfers. It is crucial to arrange suitable life cover to address the tax when due.

    If one opts for the asset gifting route, it is essential to ensure liquidity. This means having sufficient cash reserves, especially if the estate's primary assets aren't liquidated to address the tax. Remember, executors might often resort to borrowing to settle the tax.

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    Liability Mitigation: For the majority of people, the optimal IHT solution lies in a balanced approach, between selective gifting and establishing an external fund to address the tax liability. This can be achieved through a appropriate life cover in trust.

Specialist Advice To Navigate The Pitfalls of Inheritance Tax

While the aforementioned strategies provide a general overview, IHT is intricate, demanding an in-depth understanding. It is always prudent to seek specialist inhertitance tax advice, especially when your requirements are more complex.

Creating a legacy demands foresight, planning, and expertise. At MMB Finance, we are committed to guiding you through the complexities of IHT, ensuring your legacy is preserved and your loved ones are cared for. Our expert inheritance tax advisers are just a call away, ready to provide tailored IHT solutions, which will fulfil your unique needs.

For an in-depth, personalized consultation, get in touch today.