As we get older, we should start to consider planning as with inheritance tax at 40%, there could potentially be a large tax bill to pay and therefore planning in this area can save substantial amounts.
The most effective ways to reduce your inheritance tax (IHT) liability is through utilising the available exemptions, continually, over a number of years. When combined, these can have a substantial effect, but the key is planning early.
Our experienced team can put together a plan based on your personal objectives and assets in your estate that we help you work towards.
When planning effective IHT savings, we give consideration to:
- the use of trusts where appropriate;
- planning in respect of the family home;
- maximising the use of the nil rate band;
- ensuring your Will is tax efficient;
- considering lifetime gifts and annual allowances;
- ensuring pitfalls are avoided e.g. Gift with Reservation of Benefits; and
- considering Business and Agricultural Property Relief.
There are many options to consider and almost every case is different due to unique family circumstances. To understand your specific position and the steps you might be able to take to minimise exposure to inheritance tax, contact us.