Imagine leaving your loved ones with a massive tax bill instead of your hard-earned assets. It’s a grim thought, but one that could become a reality for many families in the wake of recent budget changes. But here’s where it gets interesting: estate planning expert Steve Bish reveals that with the right strategies, families can significantly reduce—or even eliminate—inheritance tax on assets worth up to £1 million. And this is the part most people miss: it’s not just about what you leave behind, but how you plan for it.
In an exclusive interview with GB News, Bish, founder of Steve Bish Estate Planning (https://www.sbishestateplanning.co.uk/), described the latest budget as “terrible news” for many families. However, he emphasizes that there are still ample opportunities within the tax code to protect your estate. For instance, married couples and civil partners can pass their entire estate to the surviving partner tax-free, thanks to the spousal exemption. But the real game-changer comes with the next generation: children can now claim up to £650,000 tax-free from both parents, regardless of the time between their deaths. Controversially, some argue this favors wealthier families, but Bish counters that it’s about maximizing what’s legally available to everyone.
Here’s where it gets even more strategic: if you leave your home to direct descendants, children or grandchildren can claim an additional £175,000 tax-free per property. Combine these allowances, and you’re looking at a potential £1 million before any tax is due. But, as Bish points out, with soaring house prices, exceeding this threshold is easier than ever. Is this a loophole or a necessary safeguard for family wealth? The debate rages on.
Bish also highlights the importance of lifetime gifting. By maximizing the annual exemption of £3,000 and utilizing the normal expenditure out of income allowance, you can reduce your taxable estate without compromising your lifestyle. For those with larger estates, donating 10% to charity can lower the inheritance tax rate from 40% to 36%—a strategy that’s both financially savvy and socially impactful. But does this incentivize charity or simply exploit a tax break? We’d love to hear your thoughts in the comments.
Inspired by the tragic experience of his friend Carl, who died without a will, Bish has penned Where There’s A Will, There’s A Way. This accessible guide demystifies estate planning, covering everything from probate and inheritance tax to safeguarding digital assets and pets. Bish’s mission is clear: to spare families the stress and confusion that Carl’s loved ones endured. Have you made a will? If not, what’s holding you back? Share your story below.
Whether you’re a parent, homeowner, or business owner, Bish’s book offers practical tools to ensure your legacy benefits your loved ones, not HMRC. For more information, visit https://www.sbishestateplanning.co.uk/. The question remains: will you take action now, or leave your family to navigate the complexities later?
