The White Cross Pub at Richmond upon Thames

Find out all inheritance tax liabilities (IHT) and key information on Wills, Trusts and Probate in Richmond-upon-Thames

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This page covers inheritance related issues of specific interest to residents of Richmond, including:

  • Average property prices in the borough
  • How they affect your Inheritance Tax (IHT) liability
  • Wills & Guardianship
  • Trusts and how they can be used to protect your property
  • Lasting Powers of Attorney (LPA) and how they can help you

About your property and Inheritance Tax

As one of London’s most expensive and desirable locations, Richmond-upon-Thames also has some of the highest IHT liabilities in the country.

As an individual, you will pay 40% Inheritance Tax on the total value of your estate above £325,000 As a married couple this will double to £650,000.

Property values in Richmond and inheritance tax

The average property price in Richmond-upon-Thames was £778,193 in 2018.

Taken in isolation (excluding other assets, like pensions and savings), this would create the following IHT liability:

Individual’s IHT liability – £181,277
Married couple’s IHT liability – £51,277

IHT liability based on more average property values

Looking at this in more detail, you can see that different types of properties carry vastly different IHT liabilities:

Richmond flat; £504,114 (2018)
Individual – £71,645
Married couple – nil

Richmond terrace; £842,000 (2018)
Individual – £206,800
Married couple – £76,800

Richmond semi-detached; £1,074,808 (2018)
Individual – £299,923
Married couple – £169,923

Area of Richmond with largest IHT liability

Individual – £299,923
Married couple – £169,923

Area of Richmond with lowest IHT liability

Individual – £299,923
Married couple – £169,923

Don’t forget that these figures are based purely on average property prices. If you have savings, pensions, investments and valuable possessions, such as art and jewellery, then your IHT bill will be higher.

How to reduce your IHT liability?

There are ways to reduce the amount of IHT your family will have to pay in the event of your death. Whether through use of Trusts or through sensible forward financial planning.

In the first instance, you should speak to one of our Will consultants – or a financial adviser – who can advise you on the best course of action based on your individual circumstances.

More about Wills, Trusts and Probate

Trusts and how they can be used to protect your property

You can insert a Trust into your Will to help manage your money in the event of your death. For example, you might want to add one to specify that your children inherit at 25 rather than the standard legal age of 18.

Another widely used Trust is called a Disabled Trust. This can be used to leave money to a disabled discretionary relative in a way that won’t have a negative impact on their disability allowances.

Wills & Guardianship

Having Guardianship in your Will is extremely important if you have children. Guardianship specifies to the courts how you wish your children to be cared for in the event of your death. Without this information, it is left for the Courts to decide and a judge will ultimately have the final say on who takes responsibility for them.

Lasting Power of Attorney

An LPA is a legal document that gives someone you trust the authority to act for you if you become too ill to do so for yourself. This includes things like paying bills, speaking to the bank and making important decisions about medical treatment.

It is important to get an LPA while you are healthy as it is not possible to get one if you are deemed to have already lost mental capacity.

Image by Maxwell Hamilton used under the Creative Commons license