Trusts and gifts
“There is a lifetime rate of IHT for gifts into trust,” Hollowell added. “This is 20%, which is half of the death rate of 40%. However, this is only charged when the assets being transferred into trust are worth more than the NRB of £325,000.
“Trusts are viewed by some as old fashioned but they can still be an efficient way to preserve wealth for future generations.”
Additionally, gifts to charity are exempt from IHT. “Added to this, if 10% of your overall estate is left to charity, the remainder of the estate will only be chargeable to IHT at a reduced rate of 36%, Hollowell said.
Regular review
Hollowell concluded: “Values of assets change over time so it’s important to ensure that you regularly review your situation.
“Planning during your lifetime is essential if your overall assets are in excess of the nil rate bands as is writing a will.”
