Essentially, Inheritance Tax is the tax your “estate” must pay on your assets in the event of your death. Inheritance Tax (IHT) now affects millions of people in the U.K. - and not just the very wealthy. Recent rises in house prices and increased personal wealth have meant that more people have assets in excess of the tax threshold.
It is interesting to note that:
- Giving away assets before death may not necessarily mean that IHT is avoided
- For most UK residents, IHT must be paid on oversees assets as well as those in the UK
- Gifting your house whilst still living in the property will not avoid an IHT charge
- A nil-rate discretionary trust together with a professionally prepared will could save a huge amount in IHT
- The Government collects billions of pounds each year in IHT!
With the above in mind, you may be pleased to hear that IHT is a personal taxation issue that can be minimised if constructive early planning is undertaken. At Adams & Moore, we provide effective financial plans and wills to ensure that IHT liability can be legally mitigated or even avoided altogether. We also appreciate that this is a sensitive matter and will do all we can to help clients prepare strategies to ensure that the majority of their estate passes onto their dependants (or anyone else they elect) and not HMRC.