Is your estate plan working as hard as you did to build it?

We work a lifetime to build something worth passing on. But without careful planning, a significant portion of that legacy could be lost to inheritance tax. For many families in Northern Ireland, estate planning is no longer the preserve of the wealthy — it’s essential protection for future generations.

At McConnell Kelly, we help clients take a long-term view of their estate and how best to preserve its value. It starts by understanding what your estate is actually worth, and whether it exceeds the current Inheritance Tax (IHT) thresholds.

At the time of writing, the basic nil-rate band remains at £325,000 per individual. In addition, if you are passing your main residence to a direct descendant, you may be eligible for the Residence Nil-Rate Band, worth an additional £175,000. For married couples and civil partners, any unused allowance can be transferred, potentially shielding up to £1 million from inheritance tax. But anything over that amount may be subject to IHT at 40%.

There are, however, legitimate strategies to mitigate this burden — and they work best when planned early.

Lifetime gifting is one such approach. Making gifts to your children or grandchildren during your lifetime can reduce the value of your estate, provided you live for seven years after the gift is made. There are also annual exemptions that can be used every tax year — often overlooked, but quietly effective.

For business owners and those with agricultural land, Business Relief and Agricultural Property Relief may offer significant reliefs from inheritance tax. These reliefs can reduce the taxable value of qualifying assets — sometimes down to zero. But the rules are complex, and timing is crucial. Advice should always be sought before any transfer or restructuring of such assets.

Estate planning isn’t simply about minimising tax. It’s about securing peace of mind — ensuring that what you’ve built goes to the people you intend, with as little disruption as possible.

At McConnell Kelly, we take a bespoke approach. We assess the value of your estate, help you understand your options, and work with you to build an estate plan that reflects your wishes — and protects your legacy as much as possible.

If you’d like to know where you stand, or how we can help shape your estate plan, we’re here to guide you every step of the way.