For many families, inheritance tax can come as an unwelcome surprise. While it only applies to estates above a certain value, more households are being affected each year as property prices rise across Hampshire and beyond.
The good news is that with the right planning — and a professionally written will — you can help reduce the amount your loved ones might have to pay.
At Coastal Legacy, we help people across Gosport, Fareham, Portsmouth, and the wider Hampshire area make clear, practical plans for their future. Here’s what you need to know.
What Is Inheritance Tax?
Inheritance tax (IHT) is a tax on the estate (the money, property, and possessions) of someone who has died.
In the UK, the standard inheritance tax rate is 40%, but it only applies to the portion of an estate that exceeds a certain threshold — currently £325,000.
If your estate is worth less than that, there’s no tax to pay. However, with rising house values, many families now find their estates sitting just above the threshold.
The Main Allowances and Exemptions
There are several ways inheritance tax can be reduced or avoided altogether:
1. The Nil-Rate Band
Everyone gets a £325,000 tax-free allowance. Anything above this amount may be taxed.
2. The Residence Nil-Rate Band
If you leave your main home to your children or grandchildren, you can get an extra allowance — currently up to £175,000.
3. Married Couples and Civil Partners
If you’re married or in a civil partnership, you can transfer any unused allowance to your partner. This means couples can pass on up to £1 million tax-free under current rules.
4. Gifts and Charitable Donations
Money left to charities is exempt from inheritance tax. Smaller gifts made during your lifetime may also reduce your taxable estate if managed correctly.
How a Will Can Help You Plan Ahead
A professionally written will isn’t just about deciding who gets what — it’s also one of the most effective tools for managing inheritance tax.
Your will can help by:
- Distributing assets strategically to minimise tax
- Making use of available exemptions and allowances
- Ensuring property is passed on tax-efficiently
- Including charitable gifts that lower your tax rate
At Coastal Legacy, we ensure every will we prepare is tailored to each person’s situation, helping families keep more of their estate where it belongs — with their loved ones.
The Risks of Not Planning
Without a valid will, your estate will be distributed according to intestacy laws. That can mean higher tax exposure, longer delays, and added stress for your family.
Simple planning today can prevent unnecessary costs later and ensure your estate is handled exactly as you wish.
Professional Guidance Makes the Difference
Inheritance tax can be complex, but it doesn’t need to be overwhelming. Our friendly advisors take the time to explain everything clearly — no jargon, no pressure, just practical support.
We work closely with clients across Hampshire to ensure their wills are not only legally sound but also financially sensible.
Start Planning for Peace of Mind
You’ve worked hard for what you have — and thoughtful planning ensures it benefits the people and causes that matter most.
👉 Contact Coastal Legacy today for expert will writing and inheritance planning advice across Hampshire.