Top 5 tips for reducing your IHT bill
By Will Grahame-Clarke, 19 Jun 18
With HM Revenue & Customs’ take from inheritance tax climbing steadily, Canaccord’s head of wealth planning gives his top five measures to mitigate its effect.
2. Give away excess income – unspent monthly income is simply increasing the size of your estate. Instead, distribute it among family, friends or charities – or spend it on life cover.
3. Arrange life assurance – the premium and amount of cover will normally be fixed, giving you control of your estate rather than having to make substantial gifts. You can use an annual allowance or unspent income to fund the cost of cover.
Tags: IHT
Christopher Lean says:
Life assurance provides funds to pay IHT, it does not reduce it. And it needs to be set up in trust or it will exacerbate the problem.
Placing funds in trust(DGTs and certain pensions aside) do not reduce IHT liabilities straight away, there are issues like PETs and the periodic charge to consider.
Use of Inter-Vivos plans on gifts and PETs could also be considered.