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Inheritance Tax Planning & Trusts — Protect Your Estate for the Next Generation
Plan ahead to protect your estate from inheritance tax. Inheritance tax (IHT) is charged at 40% on the value of an estate above the available thresholds — but with early, expert planning, much of it can often be reduced or avoided. HURST's tax advisers in Manchester help families, business owners and landowners across the North West and UK plan their estates, use trusts effectively and pass on more of their wealth to the people they choose.
With major IHT changes now taking effect — including new limits on business and agricultural property relief from April 2026 and pensions coming into the IHT net from April 2027 — reviewing your plans has never been more important. Our team works alongside your wider advisers to build a strategy that fits your family, your business and your wishes.
We offer a service which includes:
- A review of your current estate to establish the extent of your inheritance tax exposure based on your current will.
- We help you understand the principles of IHT and what you need to do to mitigate your exposure.
- Based on your assets and your personal circumstances, we will make recommendations about what you could do to minimise your exposure, and also ensure that you retain the necessary assets and income for your financial stability.
- Where appropriate our advice will cover the use of trusts and family investment companies.
- We will work with your other professional advisors to implement any desired planning and also put in place up to date wills.
By planning sooner rather than later, our Manchester based team of IHT and trust advisors can make sure your money ends up with the people you want, for the reasons you choose.
If you need assistance with inheritance tax or trusts we can help. Email us at imagine@hurst.co.uk or call 0161 477 2474.
Frequently asked questions about inheritance tax and trusts
What is inheritance tax and when is it payable?
Inheritance tax is a tax on the estate — the property, money and possessions — of someone who has died. It's charged at 40% on the value of the estate above the nil-rate band, which is currently £325,000, with an additional residence nil-rate band available when a home is passed to direct descendants. Careful planning can reduce or, in some cases, remove an IHT liability.
How can I reduce my inheritance tax bill?
Common strategies include making use of the nil-rate bands, giving away assets during your lifetime, using annual and small-gift exemptions, making regular gifts out of surplus income, leaving assets to a spouse or civil partner, giving to charity, and using trusts. The right combination depends on your circumstances, so tailored advice from a specialist is essential — especially with the rules now changing.
What are the inheritance tax changes coming in 2026 and 2027?
Two major reforms are underway. From 6 April 2026, 100% business and agricultural property relief is capped at the first £2.5 million of combined qualifying assets, with 50% relief (an effective 20% rate) above that, and AIM-listed shares drop to 50% relief. From 6 April 2027, most unused pension funds will fall inside the estate for IHT. Both make early planning far more important.
How do trusts help with inheritance tax planning?
A trust lets you pass assets to beneficiaries while keeping some control over how and when they're used — useful for protecting wealth for children, vulnerable relatives or future generations. Placing assets in trust can, in the right circumstances, move them outside your estate for IHT purposes over time. Trusts carry their own tax rules and charges, so they need to be set up and managed with specialist advice.
How does the residence nil-rate band work?
On top of the £325,000 nil-rate band, the residence nil-rate band gives an additional allowance — currently up to £175,000 — when you leave your main home to direct descendants such as children or grandchildren. Together a couple can potentially pass on up to £1 million tax-free. The residence allowance tapers away for larger estates, so it's worth checking whether yours qualifies.
Do I have to pay inheritance tax on gifts?
Many gifts are exempt, including anything you give to a spouse or civil partner, up to £3,000 a year under the annual exemption, small gifts, and regular gifts made out of surplus income. Larger gifts to individuals are usually "potentially exempt" — free of IHT if you survive seven years after making them. Gifts made within seven years of death may attract tax on a sliding scale.
When should I start inheritance tax planning?
The earlier the better. Many of the most effective strategies — lifetime gifting, the seven-year rule on gifts, and restructuring how assets are held — work best with time on your side, and the recent changes to reliefs and pensions make early review especially valuable. It's never too soon to put a plan in place, and reviewing it after major life events or Budgets keeps it effective.
How can HURST help with inheritance tax and estate planning?
HURST's Manchester-based tax advisory team helps families, business owners and landowners plan their estates, structure and manage trusts, and navigate the 2026 and 2027 IHT reforms. We work alongside your solicitor and financial adviser to build a coordinated plan that reduces your liability and reflects your wishes.
If you need assistance with inheritance tax or trusts we can help. Email us at imagine@hurst.co.uk or call 0161 477 2474.
