Avoiding Inheritance Tax

That old saying of Benjamin Franklin’s of the only certainties in life being death and taxes is never truer, however, it is quite alarming that having paid ‘your dues’ during your lifetime, HMRC have another chance to gain some of your hard earned wealth.

From a recent survey carried out by Macintyre Hudson, 83% of taxpayers consider IHT as being an ‘unfair tax’ particularly as this wealth has already been subject to some sort of tax along the way.

Having already taken the trouble to visit this site you are probably already aware that you are going to become liable to pay IHT or you are creating a tax burden in the future for your family. Plans to reduce or avoid IHT need not be complicated or restrictive, they just need to work, and there are some very simple steps that can be put into place immediately.

It is always worth remembering that IHT schemes which utilise exemptions rather than exploiting loopholes provide solutions of the greatest integrity. Current exemptions are quite far reaching and not so restrictive as you may at first think.

Here are some ideas for you to think about:

• Make sure that your will is up to date - the least that you can do is ensure that you know where your assets are going.

• Consider making gifts during your lifetime which will reduce your estate. There is even a type of gift that you can make on a monthly basis that HMRC will add to and can result in making your child or grandchild a millionaire.

• You do not have to lose control of your investments or income; indeed you can invest in particular classes of shares that become exempt from inheritance tax and can provide you with an income stream.

• Moving your home outside of your estate for inheritance tax purposes but keeping it within the family.

• Establishing a trust fund is another way to move funds outside of your estate and reduce your IHT liability. Choosing the most appropriate type of trust however, does require some consideration based around your needs now and in the future and the amount of money that you would like to gift away.

So what should you do next?

May I offer you my IHT MINI SERIES completely free of charge, which explores in more detail some great ideas to avoid inheritance tax. Just register below and the first part will be with you soon.

Helen

Helen Blackburn BA(Hons),CertPFS