Inheritance tax is a capital tax charged on certain gifts made during a person's lifetime and on the value of their Estate at death. It may also apply where gifts are made into trust. The tax is payable at different times depending upon the type of gift.
Taxes on death used to be associated with the very wealthy but nowadays with the starting threshold at £325,000 many more people may find a large part of their Estate passing to the Government on death rather than to their loved ones. Legislation has improved the position for some people by allowing deceased spouses' unused allowances to be taken into account, however the tax burden can still be high for many Estates.
In many cases this situation could have been avoided altogether by taking and acting upon professional Inheritance Tax Planning advice. Accountants, Lawyers, Stockbrokers and Financial Advisers can all offer various Inheritance Tax planning ideas and solutions, some or all of which may be appropriate and suitable for your needs.
We understand that all clients are different and have various and wide ranging requirements. Therefore we suggest you speak with all your advisers and ask them to explain what they can do for you, then select the solution or combination of solutions, that you feel most comfortable with.
Callaway Sykes Associates Limited can advise on several methods of mitigating Inheritance Tax to include:
- Making use of lifetime gifts
- Whole of Life policies designed to help meet the cost of the IHT bill
- Onshore or Offshore Investment Bonds written under trust
- Gift Inter-Vivos Policies - to insure the value of any gifts in the first seven years
Contact Callaway Sykes Associates Limited for a review of your current position and for advice on your options on mitigating any future IHT liability on your estate.
Please contact us on 01245 265 881 to discuss these matters further and to arrange a full business planning strategy review.
