The biggest hurdle when dealing with inheritance tax - that no one talks about!

The imposing of inheritance tax comes at a very emotional time for those family members involved and it can be a timely process. Current timescales for HMRC processing the IHT400 is 12 weeks and HMCTS is 16 weeks - this is for basic probate applications. 

The timescales given above however all rely on one crucial thing… all of the relevant documentation and information required. Obtaining this from the executor can be confusing but is crucial for Inheritance Tax calculations. 

Here are our top tips to aid a smooth process when dealing with inheritance tax:

• Emphasise Communication: Encourage open and transparent communication between your family members, and those financial professionals involved. Establishing a safe space for discussing financial matters can alleviate concerns and ensure that critical information is shared.

• Utilise Technology: Leverage advancements in technology to streamline the information gathering process. Digital platforms and tools can facilitate the aggregation of diverse financial data, making the process more efficient and less cumbersome.

• Educate and Empower: Know the importance of thorough information gathering. Be empowered with knowledge about the intricacies of inheritance tax planning and the role accurate information plays in shaping a robust strategy.

Amongst the plethora of advice on tax planning strategies and wealth preservation, the seemingly mundane task of gathering information emerges as a linchpin. It is the foundation upon which successful strategies are built. By acknowledging and addressing the challenges associated with information gathering, we can ensure that the path to effective inheritance tax planning is paved with clarity, precision, and, ultimately, financial peace of mind.

Written by Emma Cottrell, Director