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Who is an IHT Financial Adviser?

Published on 
22 Jan 2024

If you're looking for help with your estate planning, an inheritance tax financial adviser may be just what you need. IHT stands for Inheritance Tax, and IHT financial advisers are experts in helping clients minimise the amount of tax their estate will have to pay when they pass away. Inheritance Tax can be a significant burden on your loved ones, so it's important to plan ahead and ensure that your assets are protected.

An IHT financial adviser can help you navigate the complex world of estate planning and ensure that your assets are distributed according to your wishes. They can also help you understand the different options available to you, such as trusts and lifetime gifts, and help you choose the best one for your situation. With their expertise and guidance, you can rest assured that your loved ones will be taken care of when you're no longer around.

Role of an IHT Financial Adviser

An IHT financial adviser plays a crucial role in helping clients plan their estate and minimize inheritance tax liabilities. Here are some of the key responsibilities of an IHT financial adviser:

Assessment of Client's Financial Situation

The first step for an IHT financial adviser is to assess the client's financial situation, including their assets, liabilities, income, and expenses. This helps the adviser to understand the client's current financial position and identify any potential inheritance tax liabilities.

Based on this assessment, the adviser can recommend appropriate estate planning strategies to help the client minimize their inheritance tax liabilities.

Estate Planning Strategies

One of the main roles of an IHT financial consultant is to help clients develop effective estate planning strategies. This may involve setting up trusts, making gifts, or transferring assets to family members or other beneficiaries.

The adviser will work closely with the client to develop a customized estate plan that meets their specific needs and objectives. This may involve creating a will, setting up a trust, or making use of other estate planning tools.

Tax Efficiency Advice

Another important role of an inheritance tax financial adviser is to provide tax efficiency advice to clients. This may involve recommending tax-efficient investment strategies, such as investing in ISAs or pensions, or identifying tax relief opportunities.

The adviser will also help clients to understand the tax implications of their estate planning strategies and ensure that they are fully compliant with all relevant tax laws and regulations.

Overall, an IHT financial adviser can provide valuable guidance and support to clients who are looking to plan their estate and minimise their inheritance tax liabilities. By working with an experienced adviser, you can ensure that your estate plan is tailored to your specific needs and objectives, and that you are taking advantage of all available tax-efficient strategies.

UK Regulatory Bodies

The primary regulatory body governing financial advisers in the UK is the Financial Conduct Authority (FCA). The FCA is responsible for regulating and supervising financial advisers and ensuring that they comply with the relevant rules and regulations. The FCA aims to protect consumers, promote competition, and enhance the integrity of the financial system in the UK.


How does the residence nil-rate band (RNRB) impact Inheritance Tax?

The RNRB provides an additional allowance for individuals leaving a residence to direct descendants. It was £175,000 per person in 2022.

Are there exemptions for small gifts in the UK?

Yes, there are small gift exemptions allowing you to make tax-free gifts up to a certain amount per tax year.

Can I reduce Inheritance Tax by making gifts during my lifetime?

Lifetime gifts can reduce the value of your estate for IHT purposes, and there are various gift allowances and exemptions available.

What is the seven-year rule in Inheritance Tax planning?

Gifts made more than seven years before the donor's death are generally exempt from Inheritance Tax, but there are exceptions and tapering relief rules.

Looking for regulated, professional, and unbiased pension advice? Assured Private Wealth is ready to help. Reach out today to discuss your pension planning or to seek advice on inheritance tax and estate planning.

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