07718128235
omar@aswatax.co.uk
07718128235
omar@aswatax.co.uk
June 1, 2024

How to Choose an Inheritance Tax Advisor in the UK

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There is a saying that, “A wise man leaves an inheritance.”

I personally believe it’s a wise thing to do to plan your estate while you’re still alive but doing so might seem difficult in this modern times with all the complex rules and regulations around.

You may find yourself overwhelmed and unsure of how to effectively protect your wealth for future generations because of it. 

The truth is, without the right guidance, significant portions of your estate could be lost to taxes, leaving your loved ones with less than you intended.

But how do you find the right guidance? How do you identify the right inheritance tax advisor that won’t scam you of your money but help put a clear and efficient plan in place that ensures your estate is protected and your heirs receive the maximum inheritance possible?

That, my friend, is exactly why I created this blog post.

In this blog post, I’ll guide you through the process of choosing the right inheritance tax advisor in the UK. 

By the end, you’ll know exactly what to look for and how to find an expert who can help you navigate the complexities of inheritance tax planning, ensuring that your estate is managed efficiently and effectively.

Who is an Inheritance Tax Advisor?

An inheritance tax advisor is a financial professional who specialises in helping individuals plan their estates to minimise inheritance tax (IHT) liabilities. 

Here’s what an inheritance tax advisor does:

  • Estate Planning: They assist in structuring your estate to maximise tax efficiency. This includes advising on the use of trusts, gifts, and other strategies to reduce IHT.
  • Tax Reliefs and Allowances: Advisors ensure that you take full advantage of all available tax reliefs and allowances, such as the nil-rate band and residence nil-rate band.
  • Compliance: They help you navigate the complex regulations surrounding inheritance tax, ensuring that your estate plan complies with current laws and regulations.
  • Wills and Power of Attorney: Advisors can assist in drafting wills and setting up power of attorney to ensure your wishes are legally binding and your estate is managed according to your desires.
  • Long-Term Planning: They provide advice on long-term strategies to protect and transfer wealth, taking into account changes in tax laws and personal circumstances.

Qualifications to Look for in an Inheritance Tax Advisor

Choosing the right inheritance tax advisor involves evaluating their qualifications and expertise. 

Here are some key qualifications to consider:

  1. Relevant Qualifications and Certifications:
  • Look for advisors who hold relevant certifications, such as being a Chartered Tax Adviser (CTA) or a member of the Society of Trust and Estate Practitioners (STEP). These qualifications indicate a high level of expertise in tax and estate planning.
  1. Membership in Professional Bodies:
  • Membership in professional bodies like the Chartered Institute of Taxation (CIOT) or STEP ensures that the advisor adheres to professional standards and continues their education to stay current with tax laws.
  1. Specific Expertise in Inheritance Tax:
  • Ensure that the advisor has specific experience and expertise in inheritance tax planning. This can be verified through their track record, client testimonials, and case studies.

By focusing on these qualifications, you can select an advisor who is well-equipped to provide the specialised advice you need for effective inheritance tax planning. 

This will give you confidence that your estate is in capable hands, ensuring a smoother and more efficient planning process.

Services Offered by Inheritance Tax Advisors

Inheritance tax advisors offer a wide range of services to help you manage your estate efficiently. Understanding these services can help you determine what you need and find an advisor who meets those needs.

Comprehensive Estate Planning:

Inheritance tax advisors provide comprehensive estate planning services, ensuring that all aspects of your estate are structured to minimise tax liabilities and maximise the inheritance passed on to your beneficiaries.

Advice on Trusts and Gifts:

Advisors can help you set up trusts and make gifts to reduce your taxable estate. Trusts can be an effective way to control how your assets are distributed while reducing inheritance tax. Gifting assets during your lifetime can also be a strategic way to lower your estate’s value.

Assistance with Wills and Power of Attorney:

Creating a will is essential for specifying how your assets should be distributed. Advisors can guide you through the process of drafting a will and setting up a power of attorney, ensuring that your wishes are legally documented and respected.

Guidance on Utilising Tax Reliefs and Allowances:

There are various tax reliefs and allowances available that can significantly reduce your inheritance tax liability. An advisor will ensure you take full advantage of these, such as the nil-rate band and residence nil-rate band, to protect more of your wealth.

Inheritance Tax Advisor UK
Inheritance Tax Advisor UK

How to Assess the Advisor’s Understanding of Your Needs

You might be in that situation where you have more than one inheritance tax advisor’s you are considering working with. Some of them might have been referred by a friend or relative and some you might have come across them on social media.

But how do you distinguish which one of them is right for your specific needs and goals?

Here’s how to assess their understanding:

Initial Consultation:

During your first meeting, explain your financial situation and what you hope to achieve with your estate planning. Pay attention to how the advisor listens and responds to your concerns. Are they asking insightful questions that show they understand your unique circumstances?

Personalised Advice:

An advisor who provides personalised advice tailored to your situation is invaluable. They should offer solutions that specifically address your needs, rather than generic recommendations. Ask for examples of how they have helped clients in similar situations.

Clear Communication:

Effective communication is key to a successful advisor-client relationship. Ensure that the advisor explains complex tax concepts in a way that you can understand. They should be patient and willing to clarify any doubts you may have.

Flexibility and Adaptability:

Your financial situation and goals may change over time. Choose an advisor who is flexible and can adapt their strategies to meet your evolving needs. They should be proactive in updating your estate plan to reflect any changes in tax laws or personal circumstances.

By carefully assessing these aspects, you can find an inheritance tax advisor who truly understands your needs and can provide the best possible advice for managing your estate.

Costs and Fees: What to Expect from an Inheritance Tax Advisor

So you think you have found the right person to be your inheritance tax advisor, they appear to understand your needs and offer solutions that have been proven to help other people like you get your dream results.

But now it’s time for them to name their fees. How do you know what is right to pay them for their services? 

Sure, some people are really great at what they do and should be adequately compensated for what they do but how do you know you’re not overpaying them?

Here’s all you need to know about the typical fee structures and how to evaluate the value of the services provided.

Typical Fee Structures:

  • Hourly Rates: Some advisors charge by the hour, with rates varying based on their experience and expertise. This can be suitable if you need advice on specific issues or a one-off consultation.
  • Fixed Fees: Many advisors offer fixed fees for particular services, such as drafting a will or setting up a trust. This provides clarity and predictability regarding costs.
  • Percentage of Estate: In some cases, advisors charge a percentage of the estate’s value. This can be beneficial if the advisor’s efforts significantly increase your estate’s tax efficiency and overall value.

Understanding Costs Upfront:

  • Initial Consultation: Many advisors offer a free or low-cost initial consultation. Use this opportunity to discuss their fee structure and get an estimate of the total costs.
  • Transparent Pricing: Ensure the advisor provides a clear breakdown of their fees and any additional costs that might arise. This transparency helps you avoid unexpected expenses and budget accordingly.

Evaluating the Value of Services:

  • Cost-Benefit Analysis: Consider the potential tax savings and financial security gained from the advisor’s services against the fees charged. Effective tax planning can result in significant long-term savings, justifying the initial investment.
  • Quality of Advice: The expertise and personalised service provided by a specialised advisor can be invaluable. High-quality advice can prevent costly mistakes and ensure your estate plan is robust and compliant with current laws.
Right Inheritance Tax Advisor
Right Inheritance Tax Advisor

Why ASWATAX is the Right Inheritance Tax Advisor for You

At ASWATAX, we specialise in providing tailored inheritance tax advice to high net-worth individuals in the UK. 

Here’s why we are the right choice for your inheritance tax planning needs:

Expertise and Qualifications:

Our team of advisors are highly qualified, with certifications from recognised bodies such as the Chartered Institute of Taxation (CIOT) and the Society of Trust and Estate Practitioners (STEP). With years of experience in inheritance tax planning, we possess the expertise needed to navigate complex tax laws and provide you with the best strategies.

Personalised Service:

We understand that every client’s situation is unique. Our advisors take the time to understand your specific needs and goals, offering personalised advice that aligns with your financial objectives. Whether it’s setting up trusts, drafting wills, or maximising tax reliefs, we tailor our services to meet your requirements.

Proven Track Record:

ASWATAX has a proven track record of helping clients minimise their inheritance tax liabilities and secure their estates for future generations. Our clients trust us for our professionalism, reliability, and commitment to excellence.

Transparent Pricing:

We believe in transparent pricing and provide clear information about our fees. Our goal is to offer high-quality services that deliver significant value, ensuring that you get the most from your investment in professional advice.

Contact ASWATAX today to schedule a consultation and start planning your estate with confidence. Let us help you navigate the complexities of inheritance tax and secure a prosperous future for your heirs.

Conclusion

Choosing the right inheritance tax advisor is important for effective estate planning and securing your financial legacy. 

As a high net-worth individual in the UK, you face unique challenges that require specialised expertise. By understanding the role of an inheritance tax advisor, evaluating their qualifications and experience, and assessing their services and trustworthiness, you can make an informed decision that best suits your needs.

Remember, the costs and fees of hiring a professional are an investment in your financial future. The right advisor will help you minimise tax liabilities, maximise your estate's value, and ensure compliance with all regulations. 

Additionally, a reputable advisor will provide personalised advice, tailored to your specific situation, and build a trusting relationship that supports your long-term goals. 

I urge you to reach out to ASWATAX and see for your self if we meet all the criteria we listed in this post.

Thank you for reading!

Meet Omar

Omar is a Chartered Tax Advisor (a.k.a an expert on tax issues) and founder of ASWATAX. He regularly shares his knowledge and best advice here on his blog and on other channels such as LinkedIn.
Book a call today to learn more about what Omar and ASWATAX can do for you.

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