Inheritance tax is a levy placed on the estate of the deceased, usually paid out of the estate by the executor before any assets are distributed. It is important to understand the rules and regulations related to inheritance tax when planning for the future.
Inheritance tax advice can also be useful for long-term financial planning. An inheritance tax advisor can help you to understand the tax implications of certain decisions and provide advice on how to minimize the amount of inheritance tax you have to pay.
Tax Planning: Tax planning is important to reduce your potential tax liability. There are several ways to reduce the amount of tax payable. Gifts made to individuals seven years before death are exempt from inheritance tax. Additionally, transfers between spouses and civil partners are exempt.
Trusts: Trusts are a popular way to manage estate assets and minimize inheritance tax. A trust can be set up to manage the estate and distribute assets by the will.
Gifts: Gifts are an effective way to reduce your inheritance tax liability. You can make gifts during your lifetime and these can be exempt from inheritance tax if they meet certain criteria. These include gifts to individuals, charities, and political parties.
Professional Advice: It is always best to seek professional advice when considering inheritance tax planning. An experienced lawyer or accountant can provide advice on the best approach to minimize your potential tax liabilities.
