Case: Saving IHT when passing on wealth

Case: Saving IHT when passing on wealth


We were approached by a client who was reaching her mid-70s and was considering how to tax-efficiently pass on her wealth to her family.


To do this, she needed to consider what her current exposure to Inheritance Tax (IHT) was, to then understand how much of her wealth could be passed on.

She then wanted to consider what planning opportunities were available to reduce that exposure and prevent her estate from growing further, before her death.

How we solved it

We gathered all the relevant background to understand her circumstances and what structures would be suitable for her to achieve her objectives.

We provided calculations of her current exposure to IHT.

We then provided recommendations based on her circumstances to reduce that exposure, including opportunities for making lifetime gifts, making strategic investments, will planning, trusts and the potential to set up a family investment company (FIC).

This included considerations of any beneficial exemptions and reliefs available to her.

The outcome

Due to our expertise we produced a bespoke advisory report on the opportunities available to her to reduce her potential IHT bill. If she were to implement the planning to its fullest potential, her IHT bill would be reduced from approx. £1,300,000 to £300,000, a tax saving of £1,000,000.

This ultimately would provide more of her estate left over for distribution to her family.

The advice gave her clarity on the actions she needed to take and the timings of those actions in order to implement the planning effectively.

Next Steps

If you need IHT advice then please do get in touch


Leave a Reply

Your email address will not be published. Required fields are marked *