The government applies 40% Inheritance Tax (IHT) to a deceased person’s estate and certain gifts they may have made while they were still alive. While most of us would prefer not to pay this tax, many individuals and couples do end up paying it because they did not seek tax planning advice or follow through with the advice given.
To make sure that the maximum amount of wealth stays with your family, advanced inheritance tax planning and implementation is critical. There are several approaches and tactics that can be adopted to minimise tax. However, it’s essential that these be considered and applied before it’s too late. Some of these options include:
- Establishing a trust
- Life assurance
- Giving a gift for family maintenance
- Wedding presents
- Donating money to charity
- Donating money to individuals – if the donor dies after 7 years of having given the gift
- Annual exemptions
- Small gifts
- Creating a Will (and making sure it’s up to date)
Unfortunately, because IHT on the estate crystallizes upon death, the number of options open to the beneficiaries reduce significantly. Therefore, we always recommend getting personalized expert opinion as early as possible. As tax experts, ATN Partnership would welcome the opportunity to create a plan to save you and your dependents/beneficiaries more of your hard-earned wealth. If you would like more information on this service or would like to set up a meeting, please contact us.