When it comes to dealing with probate, the need to ensure that inheritance tax reliefs are applied correctly is paramount. Estates that contain businesses, business properties or agricultural land can be particularly complex to administer and seeking professional advice from a solicitor can help ensure that any inheritance tax due is calculated correctly, avoiding overpayment.
Here we look at some of the reliefs that may be available and how a probate solicitor can assist in applying them during the probate process.
Business Property Relief (BPR) and Agricultural Property Relief (APR) are two of the most commonly used inheritance tax reliefs available when it comes to ensuring that Inheritance Tax (IHT) is not over-calculated.
Business Property Relief (BPR) is a relief which can be applied to certain types of business assets. It reduces the estate’s value for IHT purposes when the assets are passed on to the beneficiaries. To qualify for BPR, the assets must be qualifying business assets, such as shares in a trading company or certain forms of property used in the business.
Agricultural Property Relief (APR) is another relief which can be used to reduce IHT due on an estate. It applies to agricultural land, buildings, machinery and livestock and can significantly reduce the value of the estate for IHT purpose. To qualify for APR, the agricultural land or assets must have been owned by the deceased for two years before death. The owner must also have been actively involved in farming the land to qualify for the relief.
Using a solicitor for probate can be extremely beneficial as their knowledge can ensure that any reliefs that may be available are applied, therefore reducing – or negating – the Inheritance Tax that may be payable in the estate.
Seeking professional help to manage the probate process can help to ensure that the estate is distributed in accordance with the wishes of the deceased and that any potential legal issues are dealt with quickly and efficiently.
Using a solicitor can help you to navigate the often confusing process of dealing with IHT and ensure that all the necessary paperwork is completed correctly and on time. A solicitor’s professional guidance can often help to avoid disputes between beneficiaries, especially if there is a large or complex estate at hand.
O’Donnell Solicitors understand how important it is to ensure all of the necessary steps are taken when it comes to probate. We can provide expert advice to ensure that all of the relevant reliefs are applied to the estate and the most effective way to administer the estate is achieved. We can also provide guidance on any disputes that may arise between beneficiaries and can help to ensure that the process is as stress-free as possible.
If you are dealing with probate and need advice on applying BPR and APR, or any other aspect of the process, then please do not hesitate to contact us. Our team of experienced solicitors can provide you with all the information and advice you need to ensure the process is handled correctly and efficiently.