Tax & Estate Planning
Tax and Estate Planning
Wealth built over a lifetime deserves to reach the people you intend it for. We help you understand your inheritance tax position, structure your affairs as efficiently as possible, and plan for the next generation ~ working alongside solicitors and tax professionals where specialist input is needed.
What This Service Covers
Financial Planning (we advise on)
INHERITANCE TAX PLANNING
Understanding your current IHT exposure, identifying available reliefs and exemptions, and building a strategy to reduce your estate's tax liability over time.
GIFTING STRATEGIES
Annual exemptions, potentially exempt transfers, the seven-year rule, and normal expenditure out of income. Structured gifting is one of the most effective IHT planning tools available.
PENSION PLANNING FOR IHT
Under current rules, pension funds are generally not included in your estate for inheritance tax purposes. This is due to change from 6 April 2027, when most pension funds and death benefits are expected to become subject to inheritance tax. This makes pensions a powerful intergenerational wealth transfer vehicle, if structured correctly. We advise on how to use your pension as part of an IHT strategy.
LIFE INSURANCE IN TRUST
A life insurance policy written in trust can fall outside your estate and be used to meet an IHT liability without depleting the estate itself. We advise on whether this is appropriate and arrange the policy on a whole-of-market basis.
BUSINESS & AGRICULTURAL RELIEF
Business owners and farmers may qualify for Business Property Relief and/or Agricultural Property Relief, which can significantly reduce IHT on qualifying assets. We advise on investments which can gain these reliefs.
Legal & Accounting (we refer where needed)
WILL DRAFTING
Drafting a will is a legal service regulated by the Law Society, not the FCA. We do not draft wills, but we work closely with solicitors and can refer you to appropriate legal professionals. We advise on on the financial and tax dimensions of what your will should achieve.
TRUST STRUCTURES
We advise on whether a trust is appropriate for your situation and work alongside solicitors who handle the legal documentation. Discretionary trusts, bare trusts, and life interest trusts each have distinct tax treatments that require careful coordination between financial and legal advice.
POWERS OF ATTORNEY
Powers of Attorney are legal documents prepared by solicitors. We flag their importance as part of estate planning conversations and refer to solicitors for drafting, but we do no prepare them ourselves.
The Financial Conduct Authority (FCA) does not regulate Inheritance Tax Planning or trust advice. Levels and bases of, and reliefs from, taxation are subject to change, and their value will depend upon personal circumstances. Taxation and legislation may change in the future. Benefits of insurance products will be put at risk or cease altogether if premium payments are not maintained.
Estate Planning - Your Questions Answered
How much inheritance tax will my estate pay?
Inheritance tax (IHT) is charged at 40% on the value of your estate above the nil rate band, which is currently £325,000 per person. A residence nil rate band of up to £175,000 is also available if you leave your main home to direct descendants, bringing the combined threshold to up to £500,000 per person — or £1 million for married couples and civil partners who transfer their unused allowances. Estates worth more than these thresholds will typically face an IHT liability unless planning reduces it. Your actual position depends on the total value of your estate, how your assets are structured, and what planning, if any, is already in place. We provide a full IHT assessment as part of our estate planning service.
What is the seven-year rule for gifts?
Under the seven-year rule, gifts you make during your lifetime are potentially exempt from inheritance tax if you survive for at least seven years after making them. These are called Potentially Exempt Transfers (PETs). If you die within seven years of making a gift, the value of that gift may be added back into your estate for IHT purposes — though taper relief reduces the tax payable on gifts made three to seven years before death. Gifts made within three years of death are taxed in full. Some gifts (such as annual exemptions of up to £3,000 per year, small gift exemptions, and gifts made out of regular surplus income) are immediately exempt regardless of survival. A structured gifting plan should be documented carefully and reviewed regularly.
Should I put my life insurance in trust?
In most cases, yes if the purpose of the policy is to provide for your family or meet an IHT liability. A life insurance policy not held in trust forms part of your estate on death, which means it could itself be subject to IHT and will be subject to probate, which delays the payout. Writing the policy in trust removes it from your estate for IHT purposes, allows the payout to reach your beneficiaries more quickly, and gives you control over who benefits. The trust documentation needs to be set up correctly, which we handle as part of the advice and arrangement process.
Do I need a trust — and how do they work?
Trusts can be a powerful estate planning tool, but they are not appropriate for everyone and must be structured carefully. In broad terms, a trust transfers legal ownership of assets to trustees, who hold them for the benefit of named beneficiaries. This can remove assets from your estate for IHT purposes, protect assets for future generations, and provide flexibility over how and when beneficiaries receive their inheritance. However, trusts carry ongoing administrative obligations, costs, and their own tax charges — including a ten-year anniversary charge for discretionary trusts. Whether a trust is appropriate depends entirely on your specific circumstances, the value of your estate, and your objectives. We advise on suitability and work alongside solicitors who handle the legal drafting.
Is estate planning different in Scotland?
Inheritance tax rules are the same across the UK because they are set by HMRC, not by devolved administrations. However, the law governing succession, wills, and trusts differs in Scotland. Scotland has its own rules on prior rights and legal rights, which can affect how an estate is distributed regardless of what a will says. Cohabiting partners, for example, have different legal protections in Scotland compared to England and Wales. This makes it particularly important that financial planning and legal advice are coordinated — which is why we work alongside Scottish solicitors as a matter of course.
Our Fee for Tax & Estate Planning
Our tax and estate planning service starts from £5,000. This reflects the complexity and depth of advice involved. It includes a thorough assessment of your estate, a written strategy covering all relevant reliefs and planning opportunities, and coordination with your solicitor and accountant where required. For clients with complex estates, business interests, or trust structures, fees are agreed on a bespoke basis at the outset. Download our Key Facts for full fee details.
Related Services
RETIREMENT PLANNING
Your pension is still one of the most tax-efficient estate planning tools available. How it interacts with your IHT position matters.
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PROTECTION
A life policy written in trust can meet an IHT liability without reducing the estate itself.​
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BUSINESS OWNERS
Business sale proceeds create immediate IHT exposure. Structuring them correctly from day one matters.
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Concerned about inheritance tax? Let's assess your position.
Your first consultation is free. We will give you a clear picture of your current IHT exposure and the options available to you — with no obligation to proceed
Email : email@blackmountwealth.co.uk | Phone : 0141 286 4342