Inheritance Tax Planning

It has been said that inheritance is the only voluntary tax there is. Inheritance tax planning is that way of arranging your financial affairs so that you avoid or minimise the amount of inheritance tax (or IHT) which would have been payable by your estate on your death.

This involves an understanding of the relevant allowances, reliefs and exemptions which are available, knowing which gifts are effective immediately and which require a further 7 years for full benefit, and making maximum use of them by forward thinking and planning. There are ways of structuring your assets, or giving them away, or putting them in trust, which can be effective in reducing IHT or avoiding it altogether.

Trusts
Trusts can be created during your lifetime, or by will on your death, which control how assets are to be used for the benefit of the named beneficiaries. These can include spouses, children and grandchildren. There are many different forms of trusts: some can be quite straightforward and some can be very complex. Each has its own tax regime. However, used correctly, they can safeguard a family inheritance and protect your estate for future generations.