One inheritance tax planning option is to ask your solicitor to make provision in your will for a charitable gift.
There are many potential benefits to this. By doing so you not only have the knowledge that you are offering significant help to a charitable cause, you can also rest assured in the knowledge that the legacy will go some way to helping reduce your inheritance tax bill.
The rules on inheritance tax planning legacies giving came into effect in April 2012 on the back of unusually bi-partisan support.
All the major leaders, including David Cameron, Nick Clegg and David Milliband, as well as business figures such as Sir Richard Branson, Lord Jacob Rothschild and Baron Davies said that they would be asking their wills solicitors to pledge 10% of their estates to charity.
Under the terms of the Legacy10 inheritance tax planning arrangements, any testator who leaves 10% of an estate to charity will be entitled to receive an inheritance tax cut which reduces liability from 40% to 36%.
There are various other ways to minimise inheritance tax liability which can work either alongside or separately from charitable giving.
From the creation of trusts to business and agricultural relief and the giving of annual gifts, there are various ways a testator can preserve an estate and minimise tax liabilities.
For advice and guidance on making a will or inheritance tax planning to reduce your liabilities and preserve your estate, please contact the partners at our North Street offices in Chichester, by clicking through to the staff profiles featured on this page.