November 22, 2020

Inheritance Tax 2020

Inheritance Tax 2020 you pay inheritance tax in the UK usually when somebody dies on the assets that they own so this video is going to explain, a bit more about inheritance tax but more importantly some useful strategies that you can use to avoid inheritance tax now here just is a lot more complicated then we're going to explain in this, video so if you want to know more technical information, please visit at our in-depth blog on the subject the details of which you can find, below so one of the best ways to avoid inheritance tax is to make a will so what a will does is allows you to decide who gets your assets, after you die and in what way so this can be very, important when we're trying to save inheritance tax because you get to strut your assets, in such a way as to potentially avoid some of the common pitfalls that people have when they don't make a will essentially what happens if you don't make it worse is the state decides how your, assets, are distributed after you die and of course that can mean unintended tax consequences now many people we speak to have generated significant amounts of money that's why they're liable to inheritance tax when they die unfortunately the habits that, got them into the position where they they have those assets.

Sort of go against them when they're they're looking to save inheritance tax essentially they don't spend, enough money so one of the things I recommend to people with an inheritance tax issue is to. Actually spend more money if you can reduce the amount that you're building your estate by your. Assets by then eventually you're going to pay less inheritance tax so there are two main ways you can you can make gifts the first is out of your income spending what you've already been.

Taxed on and the second is to give away amounts of capital from your savings or your investments to.

Your family members so another way to avoid inheritance tax is to use the legally allowable exemptions and.

Beliefs that are provided to you by the state so.

This includes things I've given money to your spouse certain gifts that allowable each year you've got allowance each year to give money away and there are different, circumstances when you can give anyway and that money will be free from inheritance tax so it pays you to look at those reliefs, and exemptions in a bit, more detail and work your way through those and make sure you're using those to their full extent but it can have a very dramatic effect on.

Reducing your inheritance tax liability so a simple way to plan for your inheritance tax liability is to take out inheritance tax insurance and what.

This means in practice has taken out whole, of life insurance policy which will run for the rest of your life and will pay a lump sum into a trust when you.

Die the idea is that this will effectively fund for the cost of the inheritance tax liability in the future and means that you can retain complete control of your assets. While you still remain alive. You can use trusts as an effective way to avoid inheritance tax but it should do this with extreme care so we only really recommend that you do this with the aid of, professional advice and what Trust can do is is a couple of things you can use them to take money outside of your own personal. Ownership while.

Retaining some control over how that money is used in the future so people often use these in combination with other exemptions that, they have in relation to inheritance tax and they're effectively making a gift of that money to that trust for the benefit of their their future generations.

In their family in most cases so it's very effective for avoiding inheritance tax but do it with care so you can also use investment products to. Avoid inheritance tax and these are usually set up in such a way, to allow you to retain control over your money but also to avoid inheritance attacks either instantly or gradually over, time so the basic idea is to use the tried and. Tested methods of HMRC I'm completely happy with while also allowing you to retain control of that money if you want to affect access to it later so this video has gone through some of the, main, ways in which we help our clients to save inheritance tax but clearly there's a lot more technical detail behind some of these strategies so I'd recommend you take a look at our technical article on a website which it.

Explains some of, these areas in a lot more detail and if you're interested you can sign up for our free mini-guide on inheritance, that's planning and that will take you through some of the practical ideas behind some of these strategies so if you've got any, questions obviously please get in touch but otherwise thanks for watching .

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