Inheritance Tax Planning in Devon & Cornwall: Does Your Family Need to Be Concerned?

Many people assume inheritance tax only affects the very wealthy.

Increasingly, that's no longer true.

Rising property values mean more families are finding themselves exposed to inheritance tax without realising it. In some cases, a significant portion of an estate can be lost unnecessarily because no planning has taken place.

Not every family needs inheritance tax planning, but understanding your position is an important part of protecting what you've built.

Inheritance Tax is currently charged at 40% on the value of an estate above the available allowances and exemptions. While that sounds straightforward, the reality is often more complicated. The value of your home, your savings, investments, business interests and even how assets are owned can all affect the position.

One of the biggest misconceptions we come across is people assuming that because they are not particularly wealthy, inheritance tax won't be an issue. In reality, a family home that has increased significantly in value over many years, combined with savings and investments, can be enough to bring an estate into scope.

The good news is that many families have more allowances available to them than they realise. Married couples and civil partners can often benefit from allowances that can be transferred between them, and there are other reliefs and exemptions that may apply depending on individual circumstances.

The important thing is not to make assumptions.

We regularly speak to people who are convinced inheritance tax will be a problem, only to discover they are comfortably within the available allowances. Equally, we meet families who are shocked to learn that a future inheritance tax liability may exist because nobody has ever reviewed their position properly and they haven't considered an inheritance they might receive.

Inheritance tax planning is not just about reducing tax. It is about making sure that as much of your estate as possible reaches the people you intend it to benefit. In some cases that may involve reviewing how assets are owned, considering the use of trusts, making gifts during your lifetime or simply ensuring your Will and wider estate planning arrangements are structured appropriately.

Not every family needs complex planning and not every family needs to take action today. However, understanding your position is often the first step. Once you know where you stand, you can make informed decisions about whether any planning is needed and what options may be available.

At Together We Plan, we help families across Devon and Cornwall understand their current position and identify whether inheritance tax planning should form part of their wider estate planning arrangements.

Creating certainty for the future starts with understanding the facts, not the assumptions.

Learn more about the four approaches you can take to IHT Planning HERE