Minimizing Inheritance Tax

Although inheritance tax is aimed at very large estates, many people, particularly in the southeast of England, now own a house which alone would be liable to the tax when they die.

If you think you may have more than £110,000 to leave when you die, especially if you have given away large amounts of money or valuables in the last few years, you should seek advice.

There are schemes around which offer ways to reduce the impact of inheritance tax. But do take care before embarking on any plan which creates artificial arrangements to avoid inheritance tax.

If you adopt a scheme which later is ruled to be invalid, it will be your heirs, not the person who sold it to you, who are liable for the tax.

If you are concerned, the simplest and safest thing you can do is to give away money or valuables to your heirs up to the value of the exemptions each year.

If you want to make a larger gift, you should consider taking out a life insurance policy which would pay sufficient to cover the tax should you die within seven years.

If you survive beyond seven years, the policy lapses.

Want to read more about this - House Value And The Taxman

or Inheritance Tax Form And General End Tax

House Value And The Taxman

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