{"id":2171,"date":"2021-04-20T08:36:54","date_gmt":"2021-04-20T08:36:54","guid":{"rendered":"https:\/\/family-matters.co.uk\/?p=2171"},"modified":"2021-04-20T08:36:54","modified_gmt":"2021-04-20T08:36:54","slug":"how-do-i-avoid-inheritance-tax","status":"publish","type":"post","link":"https:\/\/family-matters.co.uk\/inheritance-tax\/how-do-i-avoid-inheritance-tax\/","title":{"rendered":"How Do I Avoid Inheritance Tax?"},"content":{"rendered":"

10 Ways To Protect Your Assets And Reduce Inheritance Tax<\/h2>\n

When the time comes and your loved ones come to inherit your estate, the last thing you will want to leave them is a massive Inheritance Tax bill. Even if you consider your wealth levels to be modest, there are still some things you must consider to minimise Inheritance Tax, especially if you own property, and have a portfolio of savings and investments.<\/p>\n

What is Inheritance Tax?<\/h3>\n

Inheritance Tax (IHT) in the UK is a tax payable in the UK upon death. The total value of your estate is taken into consideration and sometimes certain gifts made during your lifetime are too. Presently, there is no IHT charged on estates worth up to \u00a3325,000 (this is the nil-rate band) for the 2020\/21 tax year).<\/p>\n

If your estate is worth more than \u00a3325,000, then IHT will be charged on the portion of the estate over that limit. The current rate of IHT is 40% which is paid to HM Revenue & Customs (HMRC).<\/p>\n

Naturally, you won\u2019t want the government to \u2018inherit\u2019 your hard earned belongings so it is important to act now and secure your hard-earned estate for those you want to benefit most. Here is our best advice on how to avoid inheritance tax.<\/p>\n

How Do I Avoid Inheritance Tax?<\/h3>\n

Most people consider how to avoid inheritance tax at some point in their lives. Here are our top ten tips to help you leave more to your family and loved ones and less into HMRC. Some of these strategies will require advice from a qualified IHT adviser<\/a> who can advise you on all aspects of estate planning<\/a>.<\/p>\n

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  1. \u00a0Gifts During Your Lifetime<\/strong><\/li>\n<\/ol>\n

    One way to pass on your estate without incurring an huge Inheritance Tax bill\u00a0 in the UK is to gift\/transfer it to one or more of your beneficiaries. However, this must be done seven or more years before your death. Of course, there is often no way of predicting circumstances so far into the future but doing this also enables you to help out the family whilst you are alive. If you happen to die within seven years of making the gift, Inheritance Tax may be charged. Rates will be reduced if more than three years have passed.<\/p>\n

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    1. <\/strong>Personal Gifts<\/strong><\/li>\n<\/ol>\n

      Gifts of up to a certain amount can be made free of Inheritance Tax.<\/p>\n

      Even in the last years of your life you have an annual gift allowance of:<\/p>\n