The latest statistics show the Government took a record £4.6 billion in Inheritance Tax. Almost double the £2.4 billion in 2009-2010. That is a truly shocking statistic.
When we have worked hard, paid taxes and saved all our lives to then be subject to inheritance tax at 40% just seems so unfair.
But for many of us it is not inevitable. In many cases with some sensible planning the tax bill can be substantially reduced if not totally avoided.
Talking to an experienced estate planner is the best way ahead but here are a few starting tips.
- Make sure your will is up to date. Don’t just use the family solicitor – ask around until you get a firm recommendation for a Wills and Trust specialist.
- Make sure you understand just how effective pension plans are in producing tax effective inheritances and avoiding inheritance tax.
- Take some advice on the use of Trusts. In many cases you can continue to take an income from your investments whilst making sure the capital does not fall into the IHT net.
We have all paid enough tax during our working lives and on our pensions. Surely it makes sense to reduce the final tax bill if that can be done without putting our financial security at risk.
If you, or other members of your family, would like some guidance from someone with more than thirty years financial planning experience who is doing his own IHT planning just text IHT to 07770 575122 and I will be in touch.
This is your money. One day it should be your family’s money not the tax man’s money.
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