Few people know that death taxes have been with us since 1694. They certainly are not going to go away any time soon so not having a plan makes no sense at all.
It is often said that there are only two certainties in life – death and taxes. It is when they both turn up at the same time that the problems really start.
Plans to reduce or avoid inheritance tax (IHT) can be as straightforward or complicated as you wish.
Here are three dead simple starting strategies:
- Understand the part that your pension plan can play in reducing inheritance tax. If you are drawing from your pension plan and have other investments, just knowing which money to spend first can have a huge impact on the eventual IHT bill.
- Make sure you understand how your ISA accounts can be managed to reduce IHT. Most people now understand that their ISA can be passed to their spouse on death whilst retaining the tax benefits but do you know that IHT can be entirely avoided if your ISA account is structured with IHT saving in mind.
- Use your Gift Allowances. Most people understand, and many are using, their annual gift allowance (£3,000) but few are using the “regular gifts from income” allowance. This under-used allowance can have a huge impact on IHT bills.
The only certainties in life are death and taxes! None of us can avoid death but IHT is largely a voluntary tax which can be significantly reduced, if not avoided, with some sensible planning.
If you would like to take a look at how you are doing, and make sure you are not missing any big planning opportunities, give me, Richard, a ring on 07770 575122 and let’s have a conversation.
If this is not yet an issue for you but it is for your parents please share this blog with them. As my regular readers will know I am well past retirement age so they will not be dealing with some young whiz kid they don’t understand. I don’t bite – promise.
IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
