At a staggering 40% flat rate, Inheritance Tax is one of the largest and most significant tax bills you might face. It’s therefore important to take time to consider who you want to inherit your wealth and personal effects, and how to pass them on in the most tax-efficient way.
At our recent webinar, Peter Webb, our Head of Tax Advisory, explored some of the ways in which you can take steps to reduce your Inheritance Tax bill including the use of gifts. He also touched on the relevance of the seven-year rule, and the importance of residence and domicile. Peter also discussed the use of annual and one-off allowances to help mitigate a future tax bill.
Shannon Brightman, our Trust Executive, then touched on why having a Will is key for Inheritance Tax planning to ensure that your Estate passes on to those who you’d like it to.
Huw Wedlock, our Director, shared some thoughts on how investments and insurance can be used to help reduce exposure to Inheritance Tax. He also discussed when might be the right time to start to talk to your children and wider family about passing on your wealth. The panel also explored how to start conversations about your Estate planning with your family, and some of the most common mistakes which people make when it comes to Inheritance Tax planning. Some of the most usual of these include the assumption that taking no action will result in your Estate being passed on exactly as you’d like it to, and without any Inheritance Tax due. Other common issues include planning being left until much later in life, when fewer options are available, or if an assumption is made that Inheritance Tax won’t apply following a long period of living overseas.
Although an emotive and sometimes tricky task, it’s important to take time to consider who you want to inherit your wealth and personal effects. Ensuring that you have an up-to-date Will and the right planning in place is vital, and it’s also important to seek professional advice to discuss your own circumstances.
For help and advice with any aspect of wealth or Estate planning please contact your nearest office.