best retirement plan

Planning Ahead to Counter Inheritance Tax



Posted on: 30th September 2022

There are two sides to thinking about the future – there is the side where you are thinking about your retirement and enjoying your later years, and then there is the scenario where a sudden passing would leave your family without you and struggling to recover financially. The latter is one that you understandably do not want to ponder on, but it is one of the most essential steps to take to ensure that everyone around you is taken care of when you no longer can. Therefore, it is essential to start early with the best retirement plan.


Without the appropriate provision, inheritance tax is something laying in wait to hit your family following your passing, and your estate being left to your loved ones.

This estate is made up of all of the assets that you own, your shares in jointly owned assets and any assets passed automatically by survivorship. Naturally, you will want these assets to reach your family without any hefty deductions, and careful planning with an independent financial adviser Cheshire can reduce or even eliminate the inheritance tax.

Inheritance tax is not payable on the first part of your estate value – the nil-rate band. The current nil-rate band is £325,000 and if the total value of your estate has not exceeded this, there is no inheritance tax to pay. Any outstanding debts and expenses for your funeral can be deducted from the estate value.

Family Home Interest

Additional residence-nil-band allowance is available if you leave interest in the family home to direct descendants such as your children. This applies to any individual property that has been the main residence and can be available even if that property was sold after July 7 2015.

This allowance is £175,000 which potentially will increase your inheritance tax total allowance to £500,000 – or £1m for a married couple.

Exploring the Legitimate Avenues

There are several legitimate ways to plan out reducing the amount of inheritance tax that you would have to pay. Discussing every avenue of your finances with independent financial advisers Manchester helps to find ways to mitigate any exposure, helping you find the most tax-efficient ways of making a will, making lifetime gifts, setting up trusts and effectively planning your estate and investments to safely transfer over to those you wish them to.

The good news when thinking about both of these future outlooks is that an adviser is on your side to protect your assets as best as possible, not raid your piggy bank for every last penny. In your future outlook, a financial adviser is the one person you can trust to make sure your family is safe following your passing.

For the best retirement plan, contact the team at Haven IFA today for independent financial advisers UK.