Legal News

How to reduce your estate for Inheritance Tax purposes

Save on how much inheritance tax your loved ones pay

Want to make sure your loved ones inherit the maximum amount from your estate when you pass away?

Inheritance Tax (IHT) is a government tax levied on an estate (the property, money and possessions) of someone who’s died. The #InheritanceTax limit for the 2021/22 tax year is £325,000. If your total financial assets value more than this, you may have to pay IHT.

But did you know that giving lifetime gifts reduces the #IHT payable on death so you can ensure your family get the most they can from your estate?

Save on inheritance tax

If you know your estate will be liable, you’ll want the inheritors to pay the least amount of tax possible.

Zoe Fleming from our Wills, Probate and Trusts team explains: “You can make gifts of up to £3,000 every year or make regular gifts out of income. Just be sure you have sufficient income to maintain your lifestyle. If you do this, your gifts will be exempt.

“There are also Potentially Exempt Transfers. These allow you to pay any amount of money as gifts and if you survive seven years after making them, these are also exempt from IHT.”

There are many other traps to avoid surrounding IHT. For more advice, contact Zoe Fleming on 01257 279511.

#wills #IHT #inheritancetax

Article by Director, Zoe Fleming.

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