Our private client department is able on request to provide advice to minimise potential tax liabilities in respect of inheritance tax through detailed inheritance tax planning. The type of scheme which may be of benefit to you will be explored and discussed with you at our initial consultation meeting. For those with assets of high values, we will in conjunction with counsel and other experts review the potential schemes which you may be able to benefit from, in order to limit any potential inheritance tax liability.
It is important to remember that HM Revenue & Customs are constantly changing the rules and therefore any scheme which is set up for you needs to be reviewed on a regular basis to ensure that it remains valid and to see if anything further can be done to lessen the potential inheritance tax liability.
It is possible to reduce the potential inheritance tax liability even following the deceased’s death through a variation of the will or of the distribution under the rules of intestacy. This needs to be done within two years from the date of death. Under a variation of the will or of the distribution under the intestacy rules, the beneficiary varies his/her entitlement so that the estate is distributed in a more tax efficient manner.
It is the executor’s legal responsibility to ensure that inheritance tax forms which are filed are correct and that the correct amount of tax is paid, but at the same time the executors owe a duty of care to ensure that the beneficiaries receive the maximum amount which they can from the deceased’s estate. Thus the executors could be found responsible in their duties to the beneficiaries if they have not considered maximising any potential saving from inheritance tax via variations.
Where executors are acting without legal representation, they can seek advice from our private client department as to whether or not there are any potential inheritance tax savings possible and for us to carry out the associated legal and inheritance tax work.
If you have a Will incorporating a nil rate band discretionary trust in order to minimise potential inheritance tax liability, such a trust may no longer be appropriate in view of changes to the relevant inheritance tax rules. In such a case, your Will may require to be changed and such a trust may be “undone” even after death subject to certain conditions.
