If your estate is large in size, inheritance tax could be payable after you pass away. There are ways of reducing your estates tax bill and avoiding inheritance tax, effectively increasing the amount passed on to your heirs, through inheritance planning. Here are some considerations:
- The giving of gifts,
- Leave your estate to your spouse,
- Use property allowances,
- Consider a ‘deed of variation’,
- Leave money to a Charity,
- Equity release and a life insurance policy are also other options. Advice should be sought through a specialist and we recommend you consult with an independent financial advisor.
For amounts given away in excess of £325,000 in the seven years prior to your death, the beneficiaries of these gifts will be subject to inheritance tax charges. The ‘seven year’ rule would be applied.
For any of these matters, including an inheritance tax specialist, and other matters relating to estate planning, please feel free to contact us for a free no obligation consultation