Inheritance Tax Common Mistakes
• You can transfer whatever you choose to your spouse on death as the gifts are exempt from IHT, but this can cause problems when the second person dies and wants to pass the wealth on to the children.
• Wills are often not reviewed on a regular basis for changes in circumstances.
• One trust may be more appropriate than another so seek advice from a trust specialist.
• It is generally believed that you can only give away £3,000 per year as a gift.
People are often told to mitigate IHT by insuring against this. Whilst this is an option it does not mitigate against the tax, it just provides the funds to do this, and the IHT still remains. This doesn’t need to happen.
• Creating your own will or having someone prepare it who is not a qualified solicitor. Its easy to make a will but there are a range of implications you should be aware of, which could catch you out, and potentially land you with a tax bill.
Contact Worldwide Financial Planning on 0845 230 9876 or fill in the enquiry form and send to us for more information.
'Information is given for general guidance only and specific advice should be taken before acting on any solutions detailed. All information is based on our understanding of current legal and tax practices which are subject to change.
'Information is given for general guidance only and specific advice should be taken before acting on any solutions detailed. All information is based on our understanding of current legal and tax practices which are subject to change.
'Worldwide Financial Planning Ltd are authorised and regulated by the Financial Services Authority. Worldwide is entered on the FSA register www.fsa.gov.uk/register/ under reference 440668
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