Inheritance Tax - it pays to plan ahead
- AuthorKatey Stephenson
Just over a week ago, news hit that the late Duke of Westminster had avoided paying inheritance tax (IHT) on his staggering £8bn fortune. However, unlike the many stories on tax evasion reported over the years, the measures the Duke had taken before his death were entirely lawful and allowed him to legally avoid the hefty 40% IHT bill. The tax avoidance was due to careful estate planning, with the Duke managing to mitigate his bill by holding his entire estate in a trust for his family.
Our own demise is not something that we like to think about, but incorporating a trust into your will can be an extremely effective way of avoiding a big IHT bill, to ensure your family receive the most out of your estate. Estate planning should not just be considered for the wealthy, but should be considered by every person who will eventually leave behind family and dependants. The rules surrounding IHT apply to us all (albeit on a smaller scale!) so as demonstrated by the late Duke, it literally pays to plan ahead.
For specialist advice on estate planning and trusts, please contact me on 01206 217363 or alternatively email me on Katey.firstname.lastname@example.org.