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Our Estate Planning Services

We can refer you to specialist firms who can provide you with information and advice on a number of aspects related to estate planning. For more information on Inheritance Tax, Trusts, Wills, and Lasting Powers of Attorney take a look at the sections below..
When someone dies, their estate will sometimes have to pay tax before any money is distributed. If you inherit something, there is no tax to pay immediately but you could have to pay tax later on. Here’s a guide to what tax you may need to pay and when.
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Probate trusts have no Inheritance Tax (IHT) implications and are fairly simple to set up. The aim is to avoid delays in estate administration. You will also be sure that your estate and your beneficiaries won't lose out after your death.
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Making a Will is an important part of making sure your assets are protected and that they pass on to who you decide when you pass away. We can advise on all aspects of Will making and Estate Planning. Contact us today to find out more.
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Designed for those who lack the capacity to look after their own personal, financial or business affairs. An LPA allows arrangements for family members or trusted friends to make decisions regarding healthcare and finance on your behalf.
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Don’t hesitate, contact us if you are unsure of the service you need or just need some help and advice. Contact Us


Financial Management - Tax

Taxes which could affect you and your estate:

Inheritance Tax

  • Inheritance Tax is a tax that must be paid on the estate of someone who’s died minus any money owed. Estate refers to any property, money and possessions that belonged to that person. The amount of Inheritance Tax you will pay is based on the value of your estate.
  • The current nil band inheritance tax threshold is £325,000 excluding property. If you own the property you live in and intend to leave it to your children or adopted children you may also be able able to claim the additional Residence Nil Rate Band (RNRB) of £175,000. So your maximum allowances total £500,000. The RNRB is restricted too the value of your residential home if it is less than £175,000.
  • IHT is only payable on the excess above this nil rate band. The rate at which Inheritance Tax is charged is 40%.
  • Funds are usually taken straight from the estate and paid to HMRC by the Executor of the will.
  • Sometimes the person who died has set aside money specifically to pay IHT through a whole-of-life insurance policy.
  • Assets left to your spouse/civil partner, provided they live in the UK, are exempt from Inheritance Tax.
  • Furthermore, your partner’s Inheritance Tax allowance will increase by the amount that you didn’t use, meaning a married couple or civil partners can leave £1,000,000 without it being taxed.
  • Inheritance Tax is a complicated matter. We advise you contact us to find out more about IHT planning.

Tax on Owning a Business

  • If you own shares in a UK limited company the value of these shares are not usually subject to Inheritance Tax.
  • The company needs to be classed as a trading business. It cannot be a property company or investment company. You need to have held the shares for 2 years to qualify for Business Relief.
  • Read the HMRC rules on Business Relief here.
  • There are lots of companies who offer qualifying Business Relief structures where you can invest money to shelter it from Inheritance Tax . They are very popular but many have low target return and high charges.
  • One of our probate practitioners is an experienced firm of chartered accountants. They will be happy to offer some free initial IHT advice. Please contact us and we will be happy to refer you.

Capital Gains Tax on Rented Property

  • Many people have additional rented properties they have purchased or inherited. Upon death, in addition to 40% inheritance tax, you could be paying up to a further 28% Capital Gains tax on the disposal or sale of rented property.
  • Capital Gains Tax (CGT) is a tax charged on the profit made when you sell or ‘dispose of’ assets. So on a property, you take the purchase price (or value at the time you acquired the property), off the current value and this is your capital gain.
  • Disposing of an asset can include giving it away or swapping it for something else. Everybody receives a tax-free allowance of £12,300 for Capital Gains Tax. Any profits below this amount will not be taxed.
  • The rate of Capital Gains Tax is either 10% or 20%, depending on whether you pay basic-rate or higher-rate Income Tax. However, these amounts increase to 18% and 28% for capital gains made on residential property.

Reducing Inheritance Tax

  • There are various ways to limit paying Inheritance Tax. The obvious one is giving your assets to your beneficiaries or a trust. This has to be done 7 years before you die to be classed as a Potentially Exempt Transfer (PET). Issues to be aware of is not knowing when you will die and gifting assets means you lose control of them, or lose the income.
  • Writing your will in a tax efficient way for beneficiaries. For example, If you are leaving your estate to multiple people, not just your children, making sure your residential property is left down your bloodline and the cash is left to “others” will ensure your beneficiaries maximise your tax free allowances


Why Set Up A Trust?

Trusts are set up for many reasons and have a number of benefits

A trust is the formal transfer of assets, such as property, shares or cash, to an individual or a small group of people. It can also be made to a trust company with directions who hold the assets for the benefit of others.

The details of the arrangement are usually documented in a trust deed. The assets placed in the trust are called the trust fund. There are several different types of trusts and they are each subject to different tax rules.

Trusts are set up for many reasons, for example:

  • To protect and control your family assets.
  • To protect the assets of a minor.
  • To protect the assets of a person without capacity.
  • To pass on assets whilst you are still alive.
  • To distribute assets when you die.
  • To protect assets under the rules of intestacy when someone dies without a Will (intestate).

Types of Trust

There are several different types of trust and the one you take out will depend on what you are trying to achieve. When you put things into a trust then, provided certain conditions are met, they no longer belong to you. As a result of this, their value will not normally be considered when calculating your Inheritance Tax. Instead, the assets belong to the trust.

The main types of trust we deal with are as follows:

Interest in Possession Trust

An Interest in possession trust is a trust where one or more beneficiary has the right to receive any income generated by the contests of the trust (if the trust contains shares or a rental property for example, the beneficiary may receive the profit) or the right to enjoy the trust assets in another capacity (such as living in said property) meaning they are said to have an interest in possession. The beneficiary might also be described as an income beneficiary, or life tenant.

A trust can give the interest in possession to a beneficiary for a fixed period, an indefinite period, or as is often the case, for the rest of their life. A life interest trust is the most common example of an interest in possession trust.

During the life of the trust there is no Inheritance Tax to pay as long as the asset stays in the trust and remains the interest of the beneficiary.
The people involved in a trust are:

  • The Settlor – the person putting assets into a trust
  • The Trustee – the person in charge of managing the trust
  • The Beneficiary – the person who benefits from the trust
Discretionary Trust

A Discretionary Trust is where money or other assets from your estate are placed and managed by an appointed trustee or trustees. The trustees decide who become beneficiaries, when they should receive any inheritance and how.

Depending on the terms trust deed, trustees can make decisions on:

  • How much is paid (income or capital)
  • Which beneficiary is paid
  • How often payments are made
  • Conditions attached to the trust regarding the beneficiaries

Discretionary trusts are often set aside for:

  • Future contingencies such as a grandchild and those who may need financial help in the future.
  • Beneficiaries who are underage or lack capacity.

A Discretionary Trust is particularly useful if you are unsure of how to distribute your estate now for needs that could arise in the future.

Trusts for Vulnerable Beneficiaries

A vulnerable beneficiary might not be able to manage their own finances and legal issues, therefore, Vulnerable People’s Trusts are created to maintain them. Vulnerable people, disabled people and children receive special tax treatment.

A vulnerable beneficiary is:

  • A person under 18 whose parent has died
  • A disabled person who is eligible for any of the following benefits (whether or not they receive them):
    • Attendance Allowance (either the care component at the middle or highest rate, or the mobility component at the highest rate)
    • Personal Independence Allowance
    • Increased Disablement Pension
    • Constant Attendance Allowance
    • Armed Forces Independence Payment
Accumulation Trusts

This is a trust where the trustee does not distribute the income from the trust, but gathers the income and any profits from any sale of trust assets, holding them until the trust expires. The specifics are decided when the creating document.

Mixed Trusts

Mixed Trusts are a combination of different types of Trust. Some assets may be set aside as an Interest in Possession Trust whilst others may be treated as a Discretionary Trust. Mixed Trusts are often used when beneficiaries reach adulthood at different times.

Settlor-Interested Trusts

These are Trusts where the settlor, or their spouse/civil partner may benefit from the Trust when the settlor knows that at some point in the future, he or she will be incapacitated. Assets are put in trust for his or her own future care and/or for the income of the spouse.

Non-Resident Trusts

These are used when the trustees are not resident in the UK for tax purposes. Tax rules concerning non-resident trusts are complicated.

Non-resident trusts are usually set up if:

  • Trustees reside outside the UK for tax purposes
  • Some trustees reside in the UK and the settlor was one of the following:
    • not resident
    • not normally resident
    • domiciled in the UK when the trust was set up or funds added
Parental Trusts For Children

These are trusts set up by parents minors who have never been married or in a civil partnership. They’re not a category of trust in their own right but will be either:

  • A bare trust
  • An interest in possession trust
  • An accumulation trust
  • A discretionary trust

Please get in touch. We are happy to refer you to a trust expert for some free advice.


A Will is a legal document that states what you want to happen to your assets when you pass away. Making a Will is essential if you want to make sure your belongings pass on to those whom you decide.

If you die without having written a Will (intestate) then everything you own, including all investments and savings, will be distributed by means specified by law. This might not be the way you would have chosen.

If your Will includes a Trust then, once your will has been executed, the Trustees will ‘manage’ or take care of the Trust property for however long the Trust lasts. Trusts are often made when beneficiaries are unable to take care of the property themselves. Therefore, Trustees have a legal duty to the Trust’s beneficiaries and must act in the beneficiaries’ best interests at all times, often requiring the advice of our legal experts.

Using one of our expert solicitors to write your Will is the best way to ensure peace of mind for both you and those you leave behind.

Professional Will Writing services

There are times where it is particularly important that someone with legal expertise assists you when writing a will. These include when:

  • You own assets overseas
  • You run a business (which may form part of your estate).
  • You are likely to pay Inheritance Tax
  • Your family circumstances are complicated (several ex spouses, children with different partners, or you care for vulnerable individuals or minors etc).

Why use a professional Will Writing Service?

  • You are protected – Solicitors are regulated which means if any unforeseen issues arise you can make a complaint. If the solicitor’s firm doesn’t deal with your complaint in a satisfactory manner, you can go to the Legal Ombudsman.
  • Your Will is legally binding – simple but common problems such as using an unsuitable witnesses or signing in the wrong place could invalidate your Will. Using our services will remove the risk of small things having big consequences.
  • Complicated tasks are taken care of – Inheritance Tax laws and trusts are complicated and include terminology and regulations which solicitors are familiar with. This takes the responsibility away from you and puts it into the hands of a professional.
  • Safekeeping – Your will is stored safely as we are able to safeguard the original for you.
  • Transparency of costs – Our services come with a clear break down of costs at an early stage.


Lasting Powers of Attorney

Lasting Powers of Attorney (LPAs) were created under the Mental Capacity Act 2005 replacing the former Enduring Powers of Attorney (EPA) which contained fewer powers. Their purpose is to meet the needs of those who lack the capacity to look after their own personal, financial or business affairs. An LPA allows arrangements for family members or trusted friends to make decisions regarding healthcare and finance on their behalf.

Types of LPA

Property and Financial

This kind of LPA protects the donor’s money and property. The donor is the person making the LPA. Decisions the attorneys can make include:

  • Opening, closing and using their bank or building society accounts
  • Claiming, receiving and using their benefits, pensions and allowances to benefit the donor.
  • Paying household and other bills
  • Buying and selling or maintaining their house
  • Managing their property and investments

A donor can also make a separate LPA for business affairs should they want different people to deal with them.

Health and Welfare

A health and welfare LPA, which must be made separately to the financial LPA, enables the attorneys to make choices regarding your health and care should you become incapacitated. This decision could be anything from the food you eat to the medications you take.

The donor allows the attorney to make decisions about things such as:

  • The giving or refusing of consent to health care and medical treatment
  • Help and support from social services
  • Where the donor lives – for example, whether they in their own home or move to a care home
  • Care home or care providers
  • Day-to-day matters such as diet, clothing or routine

A health and welfare attorney might need to spend the donor’s money on things that maintain or improve the donor’s quality of life such as:

  • Hairdressing or new clothes
  • Decorating the donor’s home
  • Adapting the donor’s home
  • Extra support so the donor can go out more

In this case, the attorney must communicate with the person in charge of the donor’s funds, if this is a different person.

LPAs can only be used after it’s been registered and if the donor does not have the mental capacity to make decisions at that given moment.

Life-sustaining Treatment

‘Life-sustaining treatment’ refers to medical treatment that must be administered in order to keep a person alive. When making an LPA, the donor must decide whether they wish for their attorney/s to give or refuse consent to life-saving treatment on their behalf.

If they do not give consent, then all such decisions will be made by healthcare professionals unless an Advance Decision to Refuse Treatment (ADNR) is made.

An advance decision is a legally binding statement which lets a person say what medical treatment they do not want to have in certain situations.You may want to refuse treatment in some situations, but not others. (An advance decision isn’t the same as an advance statement).

If an advance decision has been made prior to a health and welfare LPA, the LPA could take priority with regards to life-sustaining treatment.

Please get in touch. We are happy to refer you to a an LPA expert for some free advice.

There are many ways you can plan your financial future, giving security for both yourself and your family. Contact us and speak to one of our experts today.

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