Protect Your Finances For Your Family

How can Inheritance Tax Planning help me?

In the event of your death, inheritance tax can end up costing your loved ones much more than you may anticipate, without specialist planning.  It is a tax on the transfer of assets, that you may have built up during your lifetime, which you then pass on. In normal circumstances, if the value of your estate is below the nil-rate band of £325,000, or everything above the threshold is left to your spouse or a charity, there will be no tax to be paid.

Your estate is built up of cash in the bank, investments, properties and businesses you own, vehicles, and any potential pay outs from life insurance policies. If the value of your estate is above the threshold, you may be liable for the tax rate of 40%. In order to ensure that your loved ones receive as much of your remaining assets as possible, inheritance tax planning is vital.

The main aim of inheritance tax mitigation is to reduce the value of your estate – the smaller your estate, the less tax you must pay. One way to reduce the size of your estate to below the nil-rate band is by gifting your money into a trust or utilising other investment options such as Business Property Relief and Enterprise Investment Scheme products.

Alternatively, you may prefer to downsize to a cheaper property, giving money to your children now instead of later. This means that your children will still benefit from the residence nil-rate band that applied to your previous home. You may also reduce your inheritance tax by releasing equity from your property.

Why is Inheritance Tax Planning important?

At KLO Financial Services, we understand that thinking about your mortality or that of your loved ones can be a difficult subject.

However, with early preparation and planning, you can get peace of mind knowing that your chosen beneficiaries will receive as much of what you leave behind as possible.

The threshold value for inheritance tax is still less than the value of many family homes. This means that without proper planning, the executors of your Will may be forced to sell assets such as the family home in order to pay the bill.

What can KLO Financial Services help me with?

Our experienced financial planners specialise in providing estate planning solutions, so working with us means that you can rest easy knowing your loved ones are protected from financial insecurity in the event of your death.

We do this with close relationships with solicitors who specialise in Wills and Probate matters, as well as Inheritance Tax law and Trust formation. These relationships are vital in providing the best client outcomes.

Independent Financial Advisers

Why KLO Financial Services?

After working all our lives for financial prosperity and security, it is only natural to want to pass down the fruits of our labour to the ones we love. At KLO Financial Services, we can help you achieve this goal. We listen, assess, and advise you on the most appropriate strategies for inheritance tax planning, preserving your hard-earned assets from any unnecessary inheritance tax liability.

  • Listen

    Our Inheritance Tax advisers understand that every person and family has a unique financial situation. You will require a solution that is tailored to you. At KLO Financial Services, we will listen to you in order to get an accurate picture of any potential liabilities.

  • Evaluate

    Our inheritance tax advisers are always up to date with current Inheritance Tax regulation. This means that our financial advisers can provide solutions that take into account the ever-changing regulatory environment.

  • Advise

    After careful analysis, we will present the inheritance tax planning options available to you and listen carefully to your feedback. We want to make sure that you understand and are comfortable with our recommendations.

We’re Here to Help

Contact Us Today

We are always eager and available to meet with you to discuss your financial objectives and assess your current strategies. No question is too big or too small. The first consultation is always free and comes with no obligation. If you’d like to speak to one of our expert financial advisers, get in touch today.

What are the benefits of Inheritance Tax Planning?

At KLO Financial Services, we share a passion for the importance of inheritance tax planning. Here are five benefits of inheritance tax planning, with the help of an expert financial adviser:

Increased Financial Protection

One of the primary benefits to inheritance tax planning is the increased financial protection for your family. After working for your own financial success, reducing your inheritance tax liability passes more of your estate onto the loved ones you leave behind.

Less Worry

Another benefit to effective inheritance tax planning is that you can live without worry as you know that if anything were to happen to you, your wishes will be seamlessly carried out. You can know that those around you will not have the worry of financial burden arising in the event of your death.

Improved Financial Understanding

Our inheritance tax planners will help to educate you on ever changing laws and regulations, as well as how certain inheritance tax planning strategies would be beneficial to you, given your specific circumstances. By deepening your financial understanding, you will find it easier to measure your estate planning goals and make financial decisions both now and in the future.

Increased Legal Protection

By using KLO Financial Services, you can rest assured knowing that all our independent financial planners are fully qualified and closely regulated. We work closely with equally qualified solicitors and tax advisers, to ensure the best outcome for out clients and their beneficiaries.

Reduced Legwork

Using an inheritance tax planner takes away the stress of having to do large amounts of research, or time-consuming paperwork, as we do all of this for you. All our planners are experts within the changing landscape of financial services, ensuring that we find the best solution for you and your estate, with a much, or as a little, involvement from you as you wish.

Need Help?

Frequently Asked Questions

There is often the misconception that only the very wealthy are affected by the inheritance tax. This, however, is incorrect. Increasing estate valuations mean that many people could be affected by inheritance tax without realising. From 2020, the new £1 million inheritance tax threshold only applies to married couples or civil partners that intend for blood relatives to inherit the family home. If you are single or divorced, the amount is halved.

The current threshold is £325,000 for an individual and £650,000 for a married couple or civil partners. If you are widowed, the threshold may be £650,000 depending on how much of the allowance was used when your partner passed way. This increases to £1 million with the Additional Residential Nil-Rate Band.

The simple answer is yes. Provisions introduced by the Finance Act in 2008 mean that survivors of a marriage or civil partnership have been able to claim their spouse’s unused nil-rate band on their death. The only factor that may affect this is how much of the available nil-rate band has been utilised.

If you avoid making inheritance tax plans, your options could potentially be reduced, and costs could be increased. For example, a gift made to a beneficiary could potentially reduce your inheritance tax bill, but you must survive a minimum of seven years after for this to take full effect. If you die within this period, the inheritance tax liability still exists.

There are a few gifts you can give that are automatically exempt from inheritance tax. This includes any transfers between married couples or civil partners, UK registered charities, qualifying political parties and various national institutions.

There are also gifts exempt from inheritance tax, which includes small gifts up to the value of £250 in any one tax year. This can be given to as many people as you wish. As well as this, another amount of £3000 is annually exempt each tax year, which can be carried over to the following tax year. An exempt gift can also be given for a wedding – up to £5000 to a child and £2500 to a grandchild or great grandchild and £1000 to anyone else.

Upon your death, the executor of your Will must settle any Inheritance Tax liability.  Only once the bill has been settled will assets be distributed to your beneficiaries.

What Our Clients Say

People Love KLO Financial Services

‘John Glavey has successfully managed my pensions and investments for more than 20 years. Despite turbulent financial times I have been extremely pleased with the performance I have received and the service that John has given me.’


Oxfordshire

‘We have been thoroughly impressed by the detailed advice Andy has given Oneresource Virtual Assistants to enable us to set up workplace pensions for both the directors and the employees of the company. With Andy’s help we feel we have been able to make informed, cost-effective choices that match our aims and goals.’


Oxfordshire

‘John Glavey has been our personal IFA for over 30 years. In addition, he acted for 40+ employees of companies of which Mr B was a Director. His advice and actions has made our retirement financially comfortable. Throughout those years his attitude has been relaxed but positive and we always had the feeling that he was maintaining his knowledge of trends and changing investments where appropriate. His up to the minute qualifications corroborate that.’


Oxfordshire