If an estate looks like it may be liable to inheritance tax, an early approach to a solicitor after a death might help save you some of that potential tax.
The 4th Duke of Westminster died in 1967 from cancer. His executors successfully argued that his death had been hastened by septicaemia in a war wound suffered in 1944 while on active service. As such, his estate was exempt from the then equivalent of inheritance tax.
The Inheritance Tax Act 1984 specifically exempts an individual’s estate from inheritance tax if injuries suffered while serving in the Armed Forces contributed to their death – however long ago the injuries occurred.
Wansbroughs can advise you about possible exemptions and reliefs from inheritance tax that may be available. Take the example of the lady who, during her lifetime, had made numerous gifts of varying amounts to friends and family. We helped establish to the Revenue that all those gifts were exempt for inheritance tax purposes (making use of various reliefs and exemptions) rather than taxable as part of the estate. With gifts totalling £50,000 such use of exemptions could save the estate inheritance tax of £20,000.
Yes, instructing a solicitor in the administration of an estate will incur costs, but you might get that back (and more!) by taking advantage of their knowledge of the inheritance tax system and the available exemptions and reliefs.
The Tax & Succession Planning Team at Wansbroughs is experienced and knowledgeable when dealing with estates and the Revenue, for further advice or assistance please get in touch with Anna Wensley Stock or your usual contact in the Team.
