Inheritance tax planning
Unfortunately, for many years individuals have associated Inheritance Tax & Estate Planning only with the wealthy; along with expensive fees and large expenses incurred with a loss of control over ones estate. These concerns and ideas over Inheritance Tax & Estate Planning are no longer the case.
Over recent years many ordinary families have now found out to their own cost that Inheritance Tax & Estate Planning is not just being paid by the wealthy but is now being paid by their own families upon the death of a loved one whose greatest wish was to pass on their wealth to their loved ones. A US President, Benjamin Franklin, is accredited with the following statement;
'There are only two certainties in life, Death and Taxes.'
Currently, there is no avoiding the first, but, you can mitigate or in some cases legitimately avoid your Inheritance Tax liability, with prudent planning. This can be accomplished by utilising one or more of the following;
- Establish a suitable trust
- You could choose to spend it
- You could give it away
- You could consider repositioning your existing estate
- And you could insure against the inheritance tax liability
Alternatively, you could take the view that you will make a voluntary inheritance tax payment currently levied at 40% by doing nothing. This is certainly a course of action apparently accredited with Lord Jenkins when he stated;
'Inheritance Tax is commonly referred to as the "Voluntary Tax" because there are many strategies available to legitimately avoid or reduce the eventual tax on your estate.'
This voluntary tax payment can be avoided if you take independent financial advice because there are many inexpensive strategies that can be employed to help you mitigate against this tax and in some cases legitimately avoid this potential tax liability altogether.