Inheritance Tax Reduction
If you are a homeowner, it is possible that your
estate is above the threshold for Inheritance Tax (IHT), even if you don’t feel very rich. Everyone should consider whether or not their families will have a tax bill when they die, and if so, what they wish to do about it. The main options are:
- Do nothing, and let them pay the taxman 40% of everything over the threshold
- Give money away to reduce your estate, within the IHT allowances and exemptions
- Give away money above the allowances and exemptions
- Purchase life assurance in trust to meet the tax bill when you die
The Budget Announcement of 9 October 2007 may mean that you should reconsider your will. It may also be preferable for an existing Discretionary Will Trust to be wound up, but this needs to be carefully planned, due to tax considerations (Income Tax and Capital Gains Tax for Trusts).Trustees are required to manage trust investments in line with current portfolio theory. The assets should be reviewed regularly, or the trustees can be held liable for unsatisfactory performance.
What happens if you haven't made a will
Email me for a chart showing what could happen.
Certain types of inheritance tax planning are not regulated by the Financial Services Authority. |
