Inheritance tax planning can be a complex area of taxation for many. A financial adviser can play a pivotal role in helping to offer clarity on this topic. In today’s article, we answer a question people often ask in this industry – ‘Can a financial adviser help with inheritance tax?

Furthermore, those with experience in dealing with inheritance tax matters can potentially save families significant amounts of money and ensure that a larger portion of an individual’s estate can be passed on to their loved ones.

Here’s how a financial adviser can assist in this process.

Can a Financial Adviser Help with Inheritance Tax?

A financial adviser brings a wealth of knowledge about the various legal and financial strategies that can help reduce or avoid unnecessary tax liabilities. Their role typically involves the following areas.

1. Assessing your estate

A financial adviser will start by assessing the value of your estate, taking into account all assets and liabilities. This is the first step in understanding any potential inheritance tax liabilities.

2. Tailored advice

Based on the assessment, a financial adviser can provide tailored advice on how to structure your estate to minimise inheritance tax. This might include recommendations on gifting, setting up trusts, and other means to negate this tax.

3. Allowances and reliefs

Financial advisers can help you make full use of allowances and reliefs, such as the nil-rate band, residence nil-rate band, and any transferable allowances from a deceased spouse or civil partner.

4. Investment strategies

Financial advisers can recommend investment strategies that qualify for inheritance tax relief, such as those that are eligible for Business Property Relief.

5. Life insurance policies

They can guide you on setting up life insurance policies that can be used, where possible, to cover an inheritance tax bill.

6. Pension advice

Pensions can be a tax-efficient way to pass on wealth. Financial advisers can provide tailored pension advice on how to use pensions in estate planning to reduce inheritance tax.

Regular reviews

Laws, regulations and your personal circumstances can change. A financial adviser can offer regular reviews to ensure that your inheritance tax planning remains effective over time.

The benefits of professional inheritance tax advice

In the next section of this short guide, we look at the potential benefits of getting professional inheritance tax advice.

1. Expertise

Many financial advisers have specialised knowledge of the tax system and can navigate complex legislation, helping you to fully understand your inheritance tax position and the best ways to potentially avoid it.

2. Objectivity

They provide an objective viewpoint, which can be crucial in family discussions about estate planning and IHT. They can help present the facts, helping to provide clarity.

3. Time-saving

They can manage the administrative burden of estate planning, saving you time and effort. Their experience means once they collect the relevant information, they can provide accurate advice in a timely manner.

4. Peace of mind

Knowing that a inheritance professional is considering all available strategies can provide peace of mind that your estate is as tax-efficient as possible.

5. Ongoing support

Financial advisers can offer ongoing support, adapting your inheritance tax planning needs to any changes in your circumstances or legislation.

Conclusion: Can a financial adviser help with inheritance tax?

Absolutely, a financial adviser can definitely help with inheritance tax. They can be an invaluable resource in IHT planning, offering expertise, objectivity, and personalised strategies to reduce or avoid potential tax liabilities.

Their guidance can ensure that you make the most of the reliefs and exemptions available and that your estate is passed on according to your wishes, with the smallest tax burden possible. If you’re considering how to manage your inheritance tax liability, consulting with a qualified financial adviser is a prudent first step.

Related reading

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