Most people are now aware that Inheritance Tax is a significant problem for ordinary people and no longer confined to the wealthy. In fact, the majority of Inheritance Tax is actually paid by ordinary people who didn't realise that there was a problem until it was too late, and actually the super-wealthy pay very little because they know they have a problem and can afford the best advice.

Can I do anything to reduce Inheritance Tax?

Absolutely! According to Roy Jenkins, Chancellor of the Exchequer, 1986 Inheritance tax is a “...voluntary tax, paid by those who distrust their heirs more than they dislike the Inland Revenue”. This is just. True now as it was then - there are many solutions available and with some thought and planning it is possible to reduce or even remove it altogether, without losing control of your assets.

Wills

You may be surprised to learn that you can write your Will in a way that could reduce tax (and perhaps save on care home fees too). By using certain trusts that only come into force on death you could protect your estate from having to pay anbill. Speak to us about tax efficient wills.

Trusts

Trusts are a way of getting assets out of your estate but still having some control over what happens to them. The two main benefits of putting money into Trust are that these assets may be excluded from your taxable estate, and the money in trust can go straight to the beneficiaries after your death and won’t be held up by Probate (or Confirmation). This is a complex area requiring specialised advice.

Discounted Gift Plans

A Discounted Gift Plan is designed for customers who want to gift money to a trust as part of their IHT planning strategy, while retaining a right to regular “income” payments from that trust. The discounted gift trust may be suitable if you are under age 90, in good health and have surplus capital that you are certain you will never require in the future, but from which you need to obtain regular withdrawals.

Business Property Relief

A range of investments have been introduced to take advantage of the Business Property Relief (BPR) available on certain company shares which gain a full exemption from inheritance tax after the shares have been held for 2 years. Business Property Relief has been in existence since 1976.

How we can help

For many people the right solution is often a combination of approaches. By carefully structuring the planning we can help you to achieve the right balance between keeping accessible money and reducing tax.

Contact us to find out how we can help you.

The personal touch and an in depth understanding of requirements makes Apex stand out from the rest.