IHT news – Inheritance tax planning needs to be addressed
The 31-page document, entitled Tax Action Report detail how around 85% of taxpayers failed to take appropriate ameliorative action regarding inheritance tax (IHT) planning over the past years.
Many seem unaware that by placing aspects of estates under trust, they can avoid IHT liability of 40% (the going rate for estates worth in excess of £325,000). This issue is particularly pertinent when it comes to life insurance payments, which, by being placed in trust can legitimately avoid tax.
Chief executive of Unbiased Karen Barrett commented, “Ensuring your life insurance payout no longer forms part of the estate is one of the simplest and most effective ways of avoiding ‘death tax’ wastage.”
However, inheritance tax (IHT) planning can be a complex issue with many fearful that shoring up money in trust can leave them short of funds at vital times, as such it makes sense for many to speak with a specialist tax management solicitor.News