Probate Solicitors Limited - Inheritance Tax Planning and Trusts
Inheritance Tax or IHT has been with us since 1984. It is basically "death duty". Many people resent IHT because they regard it as a tax on money that has already been taxed once during their lifetime through Income Tax and CGT.
Although the rate of tax (40%) has been the same for a long time, the various thresholds, exemptions and allowances are constantly changing and it is necessary to be right up to date with the legislation to minimise your exposure.
Whilst IHT used to be only a problem for the wealthy, a combination of rising house prices and a static allowance has meant an increasing number of people are now liable to this on death.
Some say that IHT is a voluntary tax because you can plan to avoid it. That is true to some extent but there may be a cost in terms of money, comfort or lifestyle in avoiding it. A holistic approach is essential when taking any tax planning measures.
Trusts can in some circumstances be used to reduce or defer IHT but the rules are complex and you should take expert advice before using them. Even if just putting a life policy or pension into trust can have unforeseen tax consequences.
Please see the following for more information :
If you would like to help on IHT planning or trusts please contact us on 01564 758055