We keep getting told how important it is to get advice on Inheritance Tax planning. But what is the best way to go about? Solicitor? Accountant? "Independent" financial advisor? Preferably without spending a large part of the inheritance?
TIA
Robin
It seems to me that if you go to a solicitor or an accountant they will answer your questions as asked. So if you don't ask the right question you may not get the information you need. An IFA that knows his job will ask you a lot of questions on the topic you want advice about (and maybe others also) and give you proper advice, referring you to a solicitor if, say, there are bits that he can't adequately deal with, like setting up trusts for example.
Rob Graham
In message , Robin writes
Certainly not an accountant unless they have a particular speciality in this regard, which is v. unlikely.
Most Solicitors in mainstream practices claim to have the knowledge, but very few have enough to properly draw up a will which properly utilises the unused threshold for IHT for the first to die for a couple. Make sure that they have a specialism in this regard, not just 'oh yes, we can dop wills for £70). (e.g. If they suggest that half the domestic property goes into a discretionary trust, go elsewhere. The Trust should only ever hold an IOU in these circs.
Check if the IFA has passed an exam called 'G10 - Taxation & Trusts' AND that he regularly advises Solicitors & Accountants on IHT matters and is prepared to draw up a report for a fee.
Cost? If it is a couple whose joint estate exceeds the £275,000 (The threshold for IHT at the moment) then the bog standard will isnt good enough. If an IOU trust is proposed (which is a very expedient way of using both individuals unused allowance) then expect to pay £500+. If it is than that then it is unlikely to be any good.
The way I'm hoping to avoid it is that I shall give my parents strict instructions to spend all their money having a thoroughly decadent retirement. It's their money, and I hope they will enjoy it. If there's nothing left for me to inherit, there's no inheritance tax.
But if you prefer to make sure there's something left to inherit, then I'd certainly start with an IFA.
Adam
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