Take steps to (legally) avoid inheritance tax


Inheritance tax is charged at 40 per cent on estates over £325,000, or £650,000 for married couples when the second spouse dies.

It might seem like a foregone conclusion that the money’s going to go whatever happens – but that’s not the case.

There are several choices available to protect your money - the results of a lifetime of work. And while the Treasury still gets its share of your estate at the end of your life, you can cover this eventuality and make sure your family still fully benefit from what you leave behind.  

Options include:

• Making sure you’ve written a will – and it’s up-to-date;
• Ensuring your property is owned correctly, and easy to organise for inheritance purposes;
• Examine tax-free gifting to transfer assets during your lifetime.

Our trusted financial partners Wren Sterling can help you make informed decisions on protecting your hard-earned cash.

Barrie Storm, an adviser with Wren Sterling said: “It might surprise some people but you can basically ‘insure’ for the inheritance tax bill.”

This could be through a whole of life assurance plan where there is a guaranteed sum assured, which can then be paid into a trust that your dependants can draw on.

This type of life insurance policy doesn’t have an end date, so you keep on paying premiums until you die at which point the policy will pay out. This cover works by placing some of your premiums into investment funds and some towards buying life cover.

Barrie added: “There are other ways to reduce tax on your inheritance. For instance gifting money is giving people their inheritance now, to reduce the total left for calculating tax. Or it can be gifted to a trust which will hold the money.”

Gifting strategies include making gifts out of surplus income, or outright gifts as Potential Exempt Transfers, which will again reduce the amount of capital left in your estate for tax purposes.


Face-to-face financial advice is becoming increasingly important at a time when it's becoming harder to find. As a qualifying member, our trusted partner, Wren Sterling, will offer you exclusive access to independent financial advice. 

Wren Sterling are known for their friendly and knowledgeable financial advice and will take time to look at what you might want to do – and tailor it exactly to your family circumstances. 

Call 0344 481 1226 about the best approach for you - or visit your local branch


Talking about money later in life


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