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Inheritance Tax Planning: Top 10 Tips

Inheritance Tax Planning: Top 10 Tips

  1. Life Policies / Pensions / Death in Service Benefits
    Take time to review your policies and options as there is potential to pass them to beneficiaries outside of your estate.
  2. Use allowances if you have excess funds
    You do have individual allowances available to make gifts before Inheritance Tax is payable.
  3. Consider Charitable Gifts – In your  lifetime or  in your Will 
    In certain circumstances, where a portion of your estate is left to charity you can qualify for a reduced rate of Inheritance Tax.
  4. Take regular advice from a STEP qualified advisor
    We always recommend our clients review their Wills every 5 years or whenever there is a significant life event; marriage, divorce, having children, a house purchase or anything similar.
  5. Understand NRB (Nil Rate Band), TNRB (Transferable Nil Rate Band) and RNRB (Residence Nil Rate Band)
    Understand your allowances for inheritance tax and the different levels of Nil Rate Band.
  6. Communication – With your family, executors and beneficiaries 
    It is important to be open with your family and your intentions with your estate if you wish.  This can help with family planning for wealth.
  7. Make a Will
    Don’t put it off! Plan for the future and have peace of mind.
  8. Don’t be scared of Trusts
    Trusts can really be your friend when it comes to planning during your lifetime or in your Will.  Some forms of Trust really are very simple and low maintenance and can fit your wishes to benefit your loved ones.
  9. Make gifts from excess income
    If you have an excess left, after your receive your income, and have plenty of provision some gifts made from excess income are exempt from Inheritance Tax.  Take advice and keep records.
  10. Last of all … spend it !

This reflects the law at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought as appropriate in relation to a particular matter. 

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