Your estate may face more inheritance tax than you think.
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Inheritance tax planning in Tunbridge Wells, Kent.
Most people are aware that inheritance tax exists. Fewer realise the full extent of what it can affect. Your estate is not just your savings and investments. It includes your property, any life insurance policies not held in trust, business interests, and gifts made within the past seven years. For many people, adding all of this together reveals a potential liability considerably larger than they had assumed.
The more important question is usually not how much tax might be owed, but whether the right people will actually benefit from what you have built. Many of the clients we work with have a clear sense of what they want to happen. What they have not done is taken the steps to ensure it will. Inheritance tax planning is the process of closing that gap and it is rarely as complicated as people fear, once someone takes the time to understand your full position.
As Chartered Financial Planners, we begin with a complete review of your estate before making any recommendation. We assess your current position, work through the options that are genuinely appropriate for your circumstances, and build a plan that fits your life and your wishes. There is no standard solution. Every recommendation reflects the individual in front of us.
What is inheritance tax and who pays it?
Inheritance tax is a charge on the value of your estate when you die. It is paid by the estate itself, usually settled from its assets before anything is distributed to beneficiaries, and in most cases before probate is granted.
The tax applies to the portion of your estate above the available threshold. Married couples and civil partners can generally pass assets to each other without triggering a charge, and any unused threshold can be carried forward to the surviving partner on second death. Estates below the threshold are unaffected.
What does your estate actually include?
Your estate for IHT purposes is likely broader than you expect. Many people account for the family home, savings and investments when they think about what they own; fewer consider the additional holdings that HMRC includes when calculating a liability. Life insurance policies not held in trust, gifts made in recent years and business interests can all form part of the total. The gap between the two is often where a significant liability sits unnoticed.
What many people consider
- Property
- Savings and cash
- Investments
What HMRC includes
- Property (including jointly owned)
- Savings and cash
- Investments (including ISAs)
- Personal possessions
- Life insurance not written in trust
- Business interests
- Gifts made in the last seven years
For illustrative purposes. Individual estates vary. Pension assets are currently outside the estate for most people, though proposed legislation would change this from 2027.
Understanding what actually counts is the first step. If any of the items on HMRC’s list are not yet part of your planning, it is worth taking the time to find out where you stand.
When should you seek inheritance tax advice?
You should consider inheritance tax advice when your estate may exceed the available nil-rate bands, when you are making substantial gifts, setting up or reviewing trusts, passing property to family, holding business or agricultural assets, reviewing pension death benefits, or updating your will after a major life event.
What are the main ways to reduce an inheritance tax liability?
There is no single solution to an IHT liability. Effective planning typically draws on more than one of these strategies in combination, depending on the size and structure of your estate and what you want to achieve.
Gifts and annual allowances
Giving assets away during your lifetime can reduce the value of your estate, subject to timing rules and annual limits. Gifts made more than seven years before death generally fall outside the estate entirely.
Property and the residence allowance
An additional allowance may apply where a family home passes to direct descendants. Eligibility depends on estate size, property structure and how assets are arranged between partners.
Trusts
Assets placed in a suitable trust can move outside the estate over time. Trusts require careful planning around structure, beneficiaries and tax; they work best as part of a wider estate plan.
Life insurance written in trust
A policy written in trust pays directly to your beneficiaries outside the estate. It does not reduce the liability itself, but provides funds to meet it without depleting other assets.
Business and agricultural relief
Qualifying business assets and agricultural property may attract significant relief, reducing or removing the IHT charge on those assets. Eligibility depends on the nature and structure of what is held.
Charitable giving
Leaving a qualifying proportion of your estate to charity can reduce both the overall IHT liability and the rate at which the remainder is taxed. Bequests require careful drafting to qualify correctly.
Not sure where to start?
In practice, these strategies work best in combination. Our Chartered advisers will review your full position and explain the options that are genuinely relevant to your estate and your circumstances.
Speak to a Chartered adviser →How AV Trinity approaches inheritance tax planning
Every client comes to us with a different estate, different family circumstances and different objectives. Here is what working with us involves.
Estate review
A clear picture of everything HMRC will count: assets, pensions, lifetime gifts and any existing arrangements.
IHT calculation
A precise calculation of your current and projected liability, including the residence nil-rate band where it applies.
Planning strategy
A personalised strategy that reflects your estate, your family's needs and your intentions for what you leave behind.
Gifting advice
Structuring gifts to work within HMRC's annual exemptions and seven-year rules, without giving away more than intended.
Trust arrangements
Setting up or reviewing trust structures to manage how assets are held, controlled and eventually passed on.
Pension integration
Incorporating pension assets into your IHT planning, particularly in light of recent changes to how pensions are treated on death.
Protection in trust
Life cover arranged in trust to meet any residual IHT liability, without the payout forming part of your estate.
Ongoing review
Regular reviews to keep your plan aligned as your estate evolves, your family circumstances change and legislation moves.
A free initial consultation costs nothing and commits you to nothing.
We work with clients at every stage. Some come to us with an urgent IHT problem, others simply want to understand where they stand. Either way, a first conversation with one of our Chartered Financial Planners is the right place to start. AV Trinity provides fixed-fee, whole-of-market inheritance tax planning advice through salaried advisers.
Inheritance tax planning is a significant undertaking. We are here to help you work through it.
IHT can affect how much of your estate reaches your family, the decisions you make about gifts and property during your lifetime, and the arrangements you put in place for the years ahead. Speaking with a Chartered Financial Planner helps you understand where your estate currently stands, what your liability is likely to be, and what options are available to you.
Leave your details and one of our Chartered Financial Planners will be in touch to discuss your situation.
Based in Royal Tunbridge Wells, we advise clients across Kent and throughout the UK. Your initial consultation is free, confidential, and comes with no obligation to proceed.
Why choose AVT?
Chartered Financial Advice.
Fully independent.
Free initial consultation.
Whole-of-estate planning.
Ongoing review included.
Our location.
AV Trinity Limited
Oakhurst House
77 Mount Ephraim
Tunbridge Wells
Kent
TN4 8BS
Tel:01892 612 500
Email:info@avtrinity.com
Areas we cover.
We advise clients across the UK. Locally, we support clients throughout Kent, including Ashford, Maidstone, Sevenoaks and Tonbridge. In East Sussex, we advise clients in areas including Bexhill, Crowborough, Eastbourne, Hastings, Heathfield and Uckfield.
Inheritance Tax (IHT): detailed questions and answers.
The information below provides detailed answers to common Inheritance Tax questions if you’d like to explore specific topics in more depth or return to a particular point later.
Who has to pay inheritance tax?
What is the residence nil-rate band?
Can inheritance tax be legally reduced?
How do trusts help with inheritance tax?
Can I give money away to avoid inheritance tax?
Does my pension count as part of my estate?
What is the difference between a will and IHT planning?
Does business property relief apply to my estate?
Is it too late to start inheritance tax planning?
What is inheritance tax?
Inheritance tax is a tax charged on the estate of someone who has died, including property, money, investments and other assets. Tax is calculated on the value of the estate above a set threshold, with the standard rate set at 40%. Not every estate is liable; the threshold, the relationships involved and the arrangements already in place all determine whether tax falls due and how much.
Who has to pay inheritance tax?
Inheritance tax is paid by the estate, not by the beneficiaries directly. It is settled before assets are distributed, which means the people who inherit receive less than the full value of what has been left to them. The executor of the estate is responsible for calculating and paying any tax owed to HMRC. Assets passing to a spouse or civil partner are generally exempt from inheritance tax.
What is the nil-rate band?
The nil-rate band is the threshold below which inheritance tax is not charged. Every individual has a nil-rate band, and any unused portion can be transferred to a surviving spouse or civil partner, potentially doubling the threshold available on the second death. Estates valued above the available threshold are subject to inheritance tax on the excess at the standard rate of 40%.
What is the residence nil-rate band?
The residence nil-rate band is an additional threshold available when a main residence is left to direct descendants, including children and grandchildren. It increases the total amount that can be passed on free of inheritance tax. The relief tapers away for larger estates and does not apply in all circumstances, which means specialist advice is important to establish whether it is available and how best to use it.
Can inheritance tax be legally reduced?
Yes. There are a number of legitimate planning strategies available, including making use of annual gifting allowances, placing assets in trust, using business or agricultural property reliefs where they apply, and structuring pension assets appropriately. The most effective plans usually combine several strategies working together, tailored to the individual estate. Planning should always be carried out with qualified advice to ensure arrangements are properly implemented and effective over time.
What is the seven-year rule for inheritance tax?
The seven-year rule relates to gifts made during a person's lifetime. If a gift is made and the giver survives for seven years, it falls outside of the estate for inheritance tax purposes. Gifts made within seven years of death may still be subject to tax, with the liability reducing on a sliding scale the further the gift was made from the date of death. Careful records of lifetime gifts are important for any estate planning strategy.
How do trusts help with inheritance tax?
Placing assets in trust can remove them from the taxable estate, depending on the type of trust and the circumstances in which it is established. Trusts also allow assets to be managed and distributed according to the settlor's wishes, which is particularly useful where beneficiaries are young or where there are family complexities. Trust arrangements carry their own tax implications and should always be set up with specialist advice to ensure they operate as intended.
Can I give money away to avoid inheritance tax?
Gifting is one of the most straightforward IHT planning strategies, but it needs to be structured carefully to be effective. HMRC allows certain gifts free of inheritance tax each year, and larger gifts can also fall outside the estate if the giver survives for seven years. However, gifts that continue to benefit the giver (for example, transferring a property but continuing to live in it) may not qualify. A structured gifting plan, reviewed regularly, is far more effective than ad hoc transfers.
Does my pension count as part of my estate for inheritance tax?
Until recently, most pension funds passed outside of the estate and were therefore free of inheritance tax. Under current proposals, from April 2027 unused pension funds and death benefits are expected to be brought within the scope of inheritance tax for many estates, significantly increasing the potential liability for those with substantial pension savings. Anyone with significant pension assets should review their position in light of these changes as a matter of priority.
What is the difference between a will and inheritance tax planning?
A will determines who receives your assets. Inheritance tax planning determines how much of those assets is subject to tax before they are distributed. The two are related but distinct: a well-drafted will is essential, but it does not in itself reduce a tax liability. Effective IHT planning works alongside a will to ensure as much of the estate as possible reaches the intended beneficiaries.
Does business property relief apply to my estate?
Business property relief can reduce or eliminate the inheritance tax liability on certain business assets, including shares in qualifying unlisted companies, business interests and some agricultural property. The relief can be significant, but the qualifying conditions are specific and not all business assets qualify automatically. If you own business interests or agricultural land, a specialist review is important to establish whether relief is available and how to structure it effectively.
Is it too late to start inheritance tax planning?
Planning is most effective when started early, but it is rarely too late to make a meaningful difference. Some strategies take time to become fully effective under HMRC rules, but others (including trust arrangements, pension restructuring and protection solutions) can be implemented at any stage. A review of your current position is always the right starting point, regardless of age or the size of the estate.
Do I need a specialist adviser for inheritance tax?
Inheritance tax planning sits at the intersection of tax law, trust law, pension rules and estate planning, all of which interact in ways that are not always straightforward. An uncoordinated approach can create problems rather than solve them. A Chartered Financial Planner with specialist IHT experience will assess the whole estate, identify the most effective strategies and ensure that any arrangements work as intended over the long term.
Where can I get inheritance tax advice in Tunbridge Wells and Kent?
AV Trinity is a Chartered financial advice firm based in Royal Tunbridge Wells, providing specialist inheritance tax advice to clients across Kent and throughout the UK. Our advisers work with individuals and families at every stage of estate planning, from an initial review of the estate through to the implementation and ongoing management of a full IHT strategy. Initial consultations are free and carry no obligation.
About this page
This page is for individuals, couples and families who want to understand whether their estate may face inheritance tax, how much could be due, and what steps may be available to reduce or manage the liability. It may be particularly relevant if you own property, have pension or investment assets, hold business interests, have made lifetime gifts, or want to pass wealth to children, grandchildren or other beneficiaries.
Useful sources: GOV.UK inheritance tax guidance, GOV.UK trusts and estates guidance, and GOV.UK inheritance tax on pensions technical note.
This page provides general information only and should not be treated as personal financial, tax or legal advice. AV Trinity provides financial advice and works alongside legal and tax professionals where specialist drafting, probate or tax advice is required.
Reviewed by Helen Carey FPFS, Chartered Financial Planner and Compliance & Operations Director, AV Trinity.
Last reviewed: May 2026