Inheritance Tax Planning

Inheritance Tax, or IHT as it is shortened to, can sometimes be a very emotional subject that clients would rather not even think about, let alone discuss. It can also be an extremely rewarding area of financial planning, in terms of ensuring as much of your well-earned money and assets (such as your belongings and home) are left to your loved ones without too much, if any in cases, being lost to the tax man.

There are several ways you can reduce the potential Inheritance Tax liability on your Estate. The main ones include;

  • Using your available Nil Rate Band of £325,000 per person
  • Using your Residence Nil Rate Band of up to £175,000 per person, whereby your main residence is being left to a ‘direct descendent’, such as children, grandchildren, stepchildren etc.
  • Gifting assets or excess income throughout your lifetime
  • Using annual gift exemptions
  • Gifting into certain types of Trust
  • Investing in certain types of investments that benefit from IHT exemption, such as Business Relief Schemes and Enterprise Investment Schemes (shares must be held for at least 2 years to qualify).

Rather than reducing the liability upon your death, we can arrange appropriate life insurance to cover the anticipated IHT liability upon your death.

If you would like to discuss Inheritance Tax planning with us, please do get in touch for a no-obligation meeting at our cost.

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