Making suitable plans

Organise how much you could leave for the people you care about

Inheritance Tax can cost families thousands of pounds but there are various ways to legally avoid paying this tax. Without making suitable plans, your loved ones could face a tax bill of 40% on the value of everything you own above a certain threshold.

Increased net worth and rising mortality rates

The earlier you put plans in place the more options you may have

With careful planning it may be possible to reduce significantly the need for your estate to pay Inheritance Tax. We spend a lifetime generating wealth and assets but not many of us ensure that it will be passed to the next generation – our children, grandchildren, nieces, nephews, and so on. Intergenerational wealth transfer is the passage of wealth from one family generation to the next.

More families subject to Inheritance Tax

Balancing your plan with other financial priorities is key

Making provision for Inheritance Tax needs to be balance the plan with your other financial priorities is key. Effective estate preservation planning could save a family a potential Inheritance Tax bill amounting to hundreds of thousands of pounds.

Making a Will

Three in five UK adults have not made provision

It’s important to make sure that after you die, your assets and possessions go to the people and organisations you choose, such as family members and charities you want to support.

Inheritance Tax Residence Nil-Rate Band

Passing on your wealth in the right way is key for its preservation

The introduction of the Residence Nil-Rate Band (RNRB) has made it easier for some individuals to pass on the family home. The rise in property prices throughout the UK means that even those with modest assets may exceed the £325,000 Nil-Rate Band (NRB) for Inheritance Tax.

Lifetime transfers

Giving away money from your estate to reduce your Inheritance Tax bill

Read more: https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-planning-and-tax-free-gifts-aw1mb2n7snwx – Which?