I'm Worth Over a Million
£1m is where planning starts to have real financial consequence. £2m is where doing nothing has serious consequence.
Between £1m and £2m of net estate, careful use of both spouses' allowances and the Residence Nil-Rate Band can leave you with no IHT at all. Above £2m, the RNRB tapers away and every strategy needs revisiting.
What typically applies
The two things almost every estate over £1m needs: a will that captures both nil-rate bands, and a view on the pension from April 2027. Above £2m, the taper on the Residence Nil-Rate Band means the effective IHT rate on some estates approaches 60%.
The planning options above £2m usually involve some combination of gifting, life cover in trust, Business Relief Investments, and — for the largest estates — Family Investment Companies or discretionary trust structures.
Where to go from here
Delivered by IMS
Wills
A will that fails to use both nil-rate bands can cost the estate £140k.
Two lanes
Control How Your Wealth Passes to Your Family
Trusts, gold-lane and regulated.
Regulated adviser
Reduce IHT Without Giving Your Money Away
Business Relief Investments — regulated advice.
Regulated adviser
Insure the Inheritance Tax Bill
Whole of Life cover for the estimated exposure — regulated advice.
In-depth problem page
Pension Changes 2027 & Inheritance Tax
Essential reading for any estate with a substantial pension pot.