A recent poll conducted by financial advisors Killik & Co has shown that many people do not understand the rules of Inheritance Tax.
They have reported that the pandemic has accelerated the plans of many to pass money to their children or grandchildren now rather than making the gifts in their Wills.
The survey says that more than a quarter of UK adults who responded said that they planned to increase the financial support they gave to family members. A fifth said they had started passing down wealth and helping children or grandchildren earlier than planned. Nearly four in 10 said they wanted to help their loved ones now rather than leaving money in a will. Two in 10 said they were anxious to help because they had seen their children or grandchildren struggle emotionally and financially during the pandemic.
Inheritance Tax planning
When making gifts it is important to understand the Inheritance Tax rules and how they may affect you. Making gifts can sometimes come with an unexpected tax liability without the proper advice, but a bit of planning can go a long way in reducing the Inheritance Tax liability that your family may face when you’re no longer around.
You might already know that there are a few hoops to jump through if you’re thinking about giving away cash or other assets during your lifetime to make sure that they’re not considered as part of your estate for Inheritance Tax purposes. If you’re going to give property away or put some things in a trust, it’s good to be familiar with what you need to do to make this work properly.
Our Inheritance Tax advice
We understand that each person’s priorities are different and that what might be an ideal tax planning solution for one family, based on their goals, might not be a practical for another family. We offer a comprehensive tax service which covers both lifetime and Will planning and which is, above all, tailored to you, advising on;
- Passing on property
- Passing on businesses, including farms
- Cash gifts
- Gifting to children
- Gifting a pension
- Inheritance Tax reliefs and exemptions
- Lifetime and post-death Inheritance Tax planning
Find out more
If you are considering making gifts it is sensible to obtain the appropriate advice. Here at Tozers we are able to assist you with your Inheritance Tax planning, and explain the rules and your options to you. Contact our specialist Later Life Planning team for more information.
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