Inheritance Tax “IHT” is simply a tax on a person’s wealth when they die. It is very likely that this wealth has already been taxed in a number of ways such as Income Tax, Capital Gains Tax, National Insurance or even previously paid Inheritance Tax. It is therefore not a popular tax and with careful financial planning can be reduced.
Whilst it is a tax you may wish to plan around, it is important to remember the need to retain funds for one’s own lifetime too. You might like to gift assets away to your children but need to ensure that you have sufficient funds for your own lifetime. We can give you a good indication of the likely IHT liability that currently exists and show you how you can potentially reduce this.
Ways to potentially reduce your Inheritance Tax bill
Inheritance Tax planning, often referred to as Estate Planning, can be a complex area of financial planning that has a number of potential solutions such as Lifetime Gifting, the use of various Trusts, Wills, Life Assurance, and qualifying investments. Inheritance Tax planning should be seen as part of an overall Wealth Management and Financial Planning exercise.
The suitability of the options depend upon your need to retain capital in case you need it, any potential income you might require in the future and many other considerations. If you can’t afford to gift any money at present there are other options too. There are many varieties of life assurance which can be used to circumnavigate inheritance tax. To find out more on the subject pay a visit to Which magazine (By clicking on this link you will leave our website and entering into Which website. Clover Wealth Management are not responsible for the content of Which website.)
With careful Inheritance tax planning/estate planning, in many cases Inheritance Tax (IHT) can be planned for successfully. Your estate can be distributed in an efficient manner to those who matter most to you.
We have many years of experience working closely with clients solicitors ensuring a joined up approach.
The Financial Conduct Authority does not regulate Taxation advice, Estate Planning, Wills and Trusts.