One of the most important things you can do to plan for inheritance tax is to make a will. This allows you to set out your wishes for the distribution of your assets and can help reduce the amount of tax due by ensuring that your estate is distributed in the most tax-efficient way.

Another strategy for inheritance tax planning is to make use of the various exemptions and reliefs that are available. For example, assets left to your spouse or civil partner are exempt from inheritance tax, as are assets left to charity. There are also various gift exemptions that can be used to reduce the value of your estate, such as the annual exemption of up to £3,000 and small gifts of up to £250 per person.

Trusts can also be a useful tool for inheritance tax planning, as they allow you to pass on assets to your loved ones while retaining some control over them. There are various types of trusts available, each with their own advantages and disadvantages, so it’s important to seek professional advice from a firm such as Tax Advisory UK to determine which type of trust is most suitable for your needs.

Taking out a life insurance policy can also be a good way to provide your loved ones with a lump sum payment upon your death that can help cover the cost of any inheritance tax due. This can be particularly useful if you have a large estate that may be subject to significant tax liabilities.

In summary, inheritance tax planning is an important process that can help ensure that your loved ones receive as much of your estate as possible. By making a will, making use of exemptions and reliefs, using trusts, and considering life insurance, you can help reduce the amount of tax that will be due upon your death. Remember to seek professional advice to ensure that you are taking the most appropriate steps for your individual circumstances.

Contact Tax Advisory UK and we will arrange a meeting with some of the UK’s best Chartered Tax Advisors who will help reduce your Inheritance Tax liabilities.  Please call 0203 965 3892.