Lifetime Tax Planning

Our Inheritance Tax planning Solicitors are experts at helping you reduce the amount of Inheritance Tax your loved ones will have to pay by guiding you through the different lifetime tax planning options.

Making lifetime gifts of your surplus income

The ‘normal expenditure out of income’ exemption from Inheritance Tax allows lifetime gifts of an unlimited amount provided they meet the set of qualifying criteria.

A claim for this type of exemption is made following the death of the donor, and if the claim is successful, the gifts made will not form part of the estate for Inheritance Tax purposes.

For gifts to qualify for an exemption, you must be able to show that the payments are made out of your ‘surplus income’ after all your usual costs of living.  Income can include employment income and investment income.  It also includes non-taxable income such as from ISAs.

There must also be an intention for gifting to be regular.

You may gift the surplus income directly to individuals, or to a lifetime trust for a group of different beneficiaries.

Use of lifetime trusts

A useful tool for Inheritance Tax (IHT) planning is the use of lifetime trusts as they have beneficial qualities, such as the ability to retain control of the assets given away, tax benefits, asset protection and second generation IHT planning.

By making a gift of assets to a trust for a group of beneficiaries (for example, your children and grandchildren) rather than outright to individuals, your assets are protected as there is a reduced risk that the assets will be lost in the event of divorce or bankruptcy of those you want to provide for.

Trusts are incredibly useful for second generation IHT planning, as the assets held in trust are also outside of the estate of the beneficiaries for IHT purposes, meaning that they will not increase their own IHT liability on death.

Disabled person’s trust

You may set up a disabled person’s trust for someone, either as a lifetime trust or in your Will on your death. The trust must meet statutory requirements and can have tax advantages for Inheritance Tax, Income Tax and Capital Gains Tax depending on individual circumstances.

Our team of specialist lifetime tax planning Solicitors have vast experience in successfully handling a wide range of cases and legal matters, and can provide expert advice and guidance for anyone looking for help around lifetime tax planning.

Get in touch with the team on 01202 525333 for specialist advice and guidance today.

Our Experts

Carla Brown

Partner, Solicitor and Head of Wills, Trusts & Probate

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Andy Kirby

Private Client Consultant

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Chris Pemberton

Partner

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Richard Smith

Partner & Solicitor

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Rebecca Suthers

Senior Associate & Chartered Legal Executive

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Nicola Hall

Associate Solicitor

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Marie Pethen

Associate & Private Client Executive

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Katy Sewell

Associate Solicitor

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Paul Naser

Consultant Solicitor

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Rosemary Drew

Chartered Legal Executive

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Rose-Marie Stone

Paralegal

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Florence Newton

Solicitor

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Louise Sutton

Chartered Legal Executive

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Jo Tout

Associate & Probate Executive

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Diane Vincent

Chartered Legal Executive

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Samantha Barratt-Habgood

Legal Assistant

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Corinne Bowerman-Watson

Wills, Trusts & Probate Assistant

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Chartered Legal Executive

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Here to help

Our specialist teams can provide full service legal advice and assistance, providing practical and cost-effective solutions.

Our offices

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302 Charminster Road Bournemouth Dorset BH8 9RU
01202 525333 Contact
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Office 320 107 – 111 Fleet Street London EC4A 2AB
02039 784720 Contact
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01425 484848 Contact
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01929 422233 Contact
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39a East Street Wimborne Dorset BH21 1DX
01202 057676 Contact