More than 5,000 inheritance tax investigations are opened by HMRC each year representing about 25% of all estates that pay IHT.
Inheritance tax is infamous for not only being disliked, but complex and at times deeply unfair. On top of that there is a one in four chance that, when your executors complete the IHT return, HMRC will open a time consuming and expensive investigation.
Most people are not deliberately trying to put one over on HMRC but, given the current complexity of the rules, it’s not really surprising if things go awry.
My experience is that few clients have anything like a full knowledge of how IHT works and even something as simple as documenting gifts within the annual exemptions is often not done properly.
Many retired people are in a position to make substantial gifts without putting their financial futures at risk. This would reduce IHT liabilities, however they do not do so through a lack of knowledge and/or guidance. The use of a simple Trust can provide you with a great deal of control over those funds and flexibility over who benefits and when.
If your total estate is estimated to be in excess of £1 million this is something it would be well worth exploring.
The starting point would be a preliminary meeting with me, for which there would be no fee. If you are interested please phone or text me, Richard, on 07770 575122 and let’s have a conversation.
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