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“Chancellor Philip Hammond earlier this year ordered a review of the IHT system… lifetime gifts can end up being taken into consideration for tax purposes”
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Inheritance Tax is complex
With the Government announcing a dramatic rise in probate fees, many people are considering reducing the size of their estate to minimise the Inheritance Tax (IHT) and probate fees that will be payable on their death. In the most extreme cases, estates worth over £2 million will pay £6,000 in probate fees, in addition to any IHT due on the estate.
Recent research* estimates that nearly seven million parents have already given their children around £227bn of their wealth early in order to reduce the amount of IHT payable on their estates. A further 6.5m are thought to be considering similar moves.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”1638″ img_size=”full” add_caption=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Using trusts and life policies
Many families are using trusts to ringfence assets, effectively removing their value from their estates. However anyone considering giving away assets in their lifetime should take professional advice.
Inheritance Tax is complex and lifetime gifts can end up being taken into consideration for tax purposes if all the conditions applying to these types of gifts aren’t fulfilled. Also, Chancellor Philip Hammond earlier this year ordered a review of the IHT system, the implications of which we will monitor closely. The Financial Conduct Authority does not regulate some forms of taxation advice.
* Direct Line Group Oct 2018[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]By Ivan Lyons, Director, Investment Solutions, Worthing
Contact Investment Solutions: Grafton House, 26 Grafton Road, Worthing, BN11 1QT. 01903 214640 or send an email to Ivan at: ilyons@graftonhouse.net or visit www.investment-solutions.co.uk
Twitter: @investment_sols[/vc_column_text][/vc_column][/vc_row]
