Inheritance Tax - About Inheritance Tax

Inheritance tax is paid out of your estate after you die to the government and is only paid out over a certain threshold amount. The good news about inheritance tax is that you can legally reduce the amount you have to pay if you gift some of your assets to the people you choose to leave your money to. This is only a good idea if the people you choose to gift the money to do not have inheritance tax issues themselves. If you are thinking of gifting some of your money to reduce inheritance tax, then you will need to also think about the effect this will have on the people receiving the money because if you leave a large amount of money to a young person for example it may demotivate them from making the effort of building wealth of their own.

We have also written an article about inheritance tax planning which you may like to read - you can find it in our "Wills" section on the left hand menu.