Inheritance Tax / Estate Planning

Inheritance Tax Planning is essentially planning for the day when wealth is passed onto the next generation, in the most tax efficient manner possible. In most cases inheritance tax can either be significantly reduced or eliminated completely, but this is down to getting the correct advice and information, and to putting the correct plan in place.

Proper inheritance tax planning should form an integral part of the wealth management process, as inheritance tax is charged at 20% of the value of an entire estate, after thresholds and exemptions are taken into account. However, in many cases, inheritance tax planning is either overlooked completely, or it is not considered, until very late, when the cost of providing for it can prove prohibitively expensive. However, if inheritance tax is planned for correctly, and reviewed on a regular basis, the cost involved can be very reasonable when compared to the benefits.

A major benefit of proper inheritance tax planning is the financial peace of mind for your beneficiaries. The beneficiaries will be in the position to make financial decisions that are in their best interest, and to avoid those decisions that could impact adversely on them. A good example of this would be the need to sell assets quickly and possibly at a price, significantly below market value, in order to pay the inheritance tax bill.

If you wish to discuss your own specific inheritance tax options, email us at info@smartfinance.ie

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Patrick Matthews trading as Smart Finance is regulated by the Central Bank.