Many clients worry they've left estate planning too late. While it's always best to start early, there are still options available to help reduce potential Inheritance Tax (IHT) liabilities.

Where a client may be vulnerable or facing time-pressured decisions, additional care should be taken.

A tax-planning solution

The adviser suggests using a Business Relief (BR)-qualifying investment. This type of investment can become free from IHT after just two years, provided it is still held at the time of death.

This approach allows the client to:

• Retain access to capital if needed*
• Reduce the estate's IHT liability significantly
• No medicals or complicated trust documents
• Potentially save up to 40% on the amount invested after just two years

If you have clients who are worried they've left estate planning too late, this could be a valuable solution.

*Subject to liquidity

How it works in practice

Summary

In many circumstances, there is still time to plan for Inheritance Tax. For clients with larger estates and a shorter planning horizon, a Business Relief-qualifying investment may fall outside the estate for IHT purposes after two years, provided qualifying conditions are met, while offering access to capital (subject to liquidity).

Try our Inheritance Tax Calculator

Quickly estimate Inheritance Tax liabilities and model the impact of Business Relief strategies with our easy-to-use calculator. Designed for financial advisers, it helps bring planning to life and support client conversations.

This tool is strictly for the use of financial advisers only.

Use our IHT Calculator now