When it comes to inheritance tax and probate planning, the simplest thing is not to do it. Or, put it off and not think about it. If you do consider the planning side, the thought is often fleeting, as you can immediately feel overwhelmed and confused.

We understand that at first glance, it would seem pointless to think ahead. But it can be incredibly detrimental to your family and beneficiaries if you don’t take action earlier rather than later and seek estate planning and tax advice.

What is Inheritance Tax (IHT) and Probate?

Inheritance Tax (IHT) is a tax charged on a person’s estate after they die. This includes things like their home, savings, personal belongings, and any other assets. The tax is usually paid by the estate before the rest is passed on to beneficiaries.

Probate is the legal process of managing someone’s estate after their death, including confirming the value of everything they owned, paying off debts and taxes (like IHT), and then distributing what’s left to the people named in their will.

If there’s no will, this process still happens, but follows strict rules called the rules of intestacy.

When is the best time to start thinking about Inheritance Tax?

Ideally, you should start considering Inheritance Tax (IHT) planning as soon as you begin to build up assets. Whether that’s buying a property, building a savings pot, investing, or starting a business. For many, this happens in their 40s or 50s, but it can be earlier. The key point is, the earlier, the better.

Starting early gives you more control and flexibility. For example, there are generous allowances and exemptions available, like the annual gifting allowance or the seven-year rule for larger gifts, that can significantly reduce the value of your estate for tax purposes. But many of these only work if you begin planning well in advance.

Another reason to plan early is the rising value of property. Many people assume IHT only affects the very wealthy, but more and more estates are creeping over the threshold simply due to increased property prices. Without estate planning, your loved ones may end up facing a larger tax bill than expected.

Planning ahead also means you have time to explore your options properly, whether that’s writing or updating a will, seeking professional advice on trusts, or simply making sure your paperwork is in order. It ensures that when the time comes, your estate can be managed smoothly and according to your wishes, giving peace of mind not just to you, but to those you care about.

How could your future look if you don’t plan ahead?

• Higher Tax Liability
  Without estate planning, you may exceed the tax-free thresholds, leaving beneficiaries with a large IHT bill.
• Delays and Legal Complications
  If there’s no will, the estate is dealt with under the rules of intestacy, which can cause significant delays, confusion, or conflict, especially in blended families or complex situations.
• Unnecessary Stress and Cost
  Lack of organisation can lead to missing paperwork, disputed claims, and higher legal or probate fees. Your loved ones may struggle to access funds, locate assets, or even know your final wishes.

Quove Accounting Can Help.

With professional tax advice, you can protect more of your legacy without compromising financial security. At Quove, we tailor estate plans to meet domestic and international rules while considering your personal, family, and business needs, along with any capital gains tax implications.

Beyond mitigating Inheritance Tax (IHT), we focus on fairness, asset protection, and wealth transfer. Our services include inheritance tax advice, will planning, retirement and cash flow assessments, strategic gifting, trusts, probate services and estate planning.

Find out more about our personal solutions

By regularly reviewing your plan, we ensure your wealth is preserved and passed on efficiently.

We can assist clients with non-contentious probate services, being authorised to do so. Now you know the benefits of being organised early, you have a huge advantage.

Get in touch today, as we will be happy to talk through your unique circumstances to ensure your estate is in the best possible position for your loved ones.

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Categories: Insights