Preparing your loved ones for when you pass away can be difficult on both an emotional and on a strategic level – not only are there funeral costs and finances to be handled by your estate, but you may be subject to inheritance tax – a levy that may be applied to any funds or assets you leave to your loved ones once you die. Inheritance tax will apply if you leave substantial wealth open to be transferred via wills or other obligations – but there are ways in which you can reduce the threat of your entire financial legacy being eaten away by inheritance tax returns.
Setting up a trust
If your aim is for your children or grandchildren to benefit directly from your financial legacy – for example, if you wish for your money to send them to university or into alternative education. This is the perfect opportunity to ensure that your money will directly benefit your family without threat of inheritance tax eating away. Accountants in London and beyond will all advise the same.
Give your partner a gift
By gifting your money to your spouse, it is non-taxable – meaning that your estate can safely avoid troublesome inheritance tax returns and can breathe easy without fear of losing a fair chunk of their inheritance to the tax man.
Give to charity
Laws in place ensure that any money you give to charity after you die isn’t taxed upon, meaning that if you intend to be charitable in your will, you can be so while ensuring that your family’s inheritance tax bill isn’t as large as they may have been expecting.
While life insurance won’t reduce an inheritance tax bill – and accountants Harrow and elsewhere will tell you the same – it can offer a considerable payout to your family and estate to ensure that they aren’t hit too hard by inheritance tax returns. Policies may vary, but the aim is still the same – to ensure that your loved ones have enough money to cover necessary costs once you pass away – and there is no reason that such costs should have to arise from inheritance that you may be due.
If you are concerned with a matter of inheritance tax returns or would like advice from accountants in London on how best to approach your last will and testament, allow us to help – call 0800 840 2501 today and we will offer sensitive and thorough support wherever you may need it the most.