Sharp-Eyed Adviser Unearths £70,000 Savings in Inheritance Tax Error

Ned spots error and saves £70,000 for his clients

As Independent Financial Advisers, we’re able to provide advice on a wide range of financial areas. We take the time to really get to know our clients and their financial aspirations, so that we can provide them with the best advice to meet their goals. We would like to share a case study with you, in which we speak with Ned Hoss, who is an Independent Financial Adviser based in our Cardiff office. He tells us how he helped save £70,000 for one of his clients.

“My clients are a son and daughter, who were the Executors of their late mother’s estate. The mother was a client of mine, and the daughter had attended a number of meetings with her mother and I previously. It often makes sense to ensure that family members are engaged in your financial plans, especially if you’re looking to pass assets to your children or grandchildren.

“The son and daughter asked to speak with me before signing HMRC Probate forms with regard to an Inheritance Tax liability. They were facing an Inheritance Tax bill of £116,000. I knew the value of their mother’s estate and this liability seemed far too high, and so I told them to hold fire while I investigated.

“I worked through the paperwork and found that their solicitor hadn’t included the additional Residence Nil Rate Band of £175,000, which they were entitled to claim, in the assessment. As a result of this, my clients were able to reduce their Inheritance Tax bill by £70,000 (£175,000 x 40%).

“This was a very pleasing result and shows the benefits of working with a financial advice firm which really does take the time to understand their clients, as this meant I quickly noticed when something didn’t seem right. It was also helpful having in-house estate planning experts at Chase de Vere, who I engaged with to confirm which of the Inheritance Tax rules should apply.”

Content correct at the time of writing.

  • Share