Can You Reduce IHT?

August 02, 2025•1 min read

Transcript below.

Can you reduce Inheritance Tax (IHT) that might be payable on your estate?

Yes, you can.

There are a number of legal things that you can do to help protect your estate, the maximum protection against Inheritance Tax (IHT). That might involve utilising something called Trusts.

Again, we would talk to you fully and explain to you about the way they work and why they may be a good idea for your estate. But also there's various gifts that you can give whilst you're alive to people, family members and so on that is exempt from it. So if you give the gifts that you are allowed, that will reduce the value of your estate over a period of time, therefore reducing your Inheritance Tax (IHT).

One thing to be aware, some people think that they can actually gift their assets, home, cash, whatever to family whilst they're still alive. The problem with that is, if you do make gifts to family or what have you, that could still be used as part of your estate's Inheritance Tax (IHT) calculation for the seven years prior to when you actually passed away. It actually goes down in percentage as to what the addition added to the estate would be, but it's something to be very aware of.

If you are considering that, you need to talk to a professional to look at the best ways of doing it because you can also, for example, if you've got a lot of savings, certain savings vehicles are outside of the Inheritance Tax (IHT) calculation as well.

Andy Rowden

Andy Rowden is the founder and director of Your Secured Legacy.

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Frequently Asked Questions

What happens if I die without a Will?

If you pass away without a Will, your estate will be distributed according to the laws of intestacy, which may not reflect your wishes. This can lead to delays, family disputes, and unintended outcomes, such as loved ones being excluded. Alternatively, your estate could end up on the hands of the government.

How can I ensure my children are cared for if I pass away?

You can name guardians in your will to care for your children if you die while they are under 18. This ensures your wishes are clear and legally binding.

Can I leave money to charity in my Will?

Absolutely. Leaving a charitable donation in your Will can be a meaningful legacy and may reduce inheritance tax on your estate.

We are proud supporters of Remember a Charity.

What happens if my executor dies before me?

If your chosen executor dies or is unable to act, the responsibility may fall to an alternative executor named in your Will. It’s wise to name a backup executor for such situations.