“Ray, I understand that the only way to avoid Inheritance tax is to give monies to my children!”
Well it is certainly true that many people want to reduce the amount of assets in their names so as to not only avoid inheritance tax, but also avoid paying for nursing home and care home costs.
Government policy such as the loan to buy scheme has meant that there has been a further boost to house prices, so much so that in many parts of the UK house prices are beyond reach of first time buyers. So many people do not want their children to struggle to get on the property ladder, or buy a bigger home for their own family, and want to help them out.
I understand also that many advisers make the avoidance of inheritance tax (IHT) quite complex so you are probably searching for a simple and straightforward solution.
Making gifts away is most certainly something you should consider but only if it is done with thought and consideration. So here are some points for you to consider:-
- Before you give the control of assets or cash away – can you afford to do so? How sure are you that you will not need the income or assets at a later date?
- Who are you giving assets away to? Your son and daughter may already have partners and any subsequent split from their current partner would undoubtedly result in your former gift dissipating.
- Putting assets into trusts can provide you with bloodline protection of your gift, (ensure you take advice).
I understand all of your friends are intent on giving their assets away – but since when has following the herd necessarily been a good idea?
Before you proceed with making any gifts, why not seek out an adviser knowledgeable in estate planning. Many will agree to a first appointment without charge or obligation.
There are ways which allow you to retain full control over your assets and avoid inheritance tax.
There are also methods of assisting your children and ensuring that your assets will only pass to your children and grandchildren.
It is essential, in my opinion, to take advice, and also to ensure that you don’t forget to allow for financing all of your plans for when you finally retire…?
To download a free guide to Inheritance Tax Planning click on link below.
http://unavida.co.uk/resources/downloads/inheritance-tax-guide/
