Personal Tax Tip 1 – Planning to reduce Inheritance Tax

Have you made a will? Have you updated it recently? And is it Inheritance Tax efficient?

Tip: There are many compelling reasons for writing a will. For example, without one it could be up to the courts to decide who will be the guardians of your children and thousands of pounds in unnecessary tax and legal costs may be incurred. Why make things even worse for your loved ones? Make a will now!

Tip: If you are having a will drawn up, it may be worth considering having a Lasting Power of Attorney drafted at the same time, to save costs. This enables you to nominate a trusted individual to deal with your affairs in the unfortunate event that you cannot deal with them.

If your estate is large have you considered

  • Inheritance tax planning?
  • Taking out an insurance policy that will pay your inheritance tax bills when you die?
  • Using lifetime gifts to avoid paying inheritance tax altogether?

Tip: One of the saddest aspects of our job is having to tell families that up to 40% of everything their loved ones worked so hard to build up and earn must be handed over to the Taxman. And it’s made even sadder by the fact that it is all so unnecessary. The truth is that, by acting early enough, most people can prevent the Taxman getting as much. There are many issues involved in getting all this right – so professional advice is essential.

What happens to your family and business if you are ill or die? Do you have life assurance, permanent health insurance and critical illness cover? Have you reviewed your policies recently? Are they still the best policies for you?

Any questions?

If you would like to arrange a free meeting with a Liverpool accountant to discuss inheritance tax, either at our office or at your premises, please contact us on 0151 724 3960 or by email at [email protected].

Alternatively, you can use our website contact form.

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Added by Jon Davies

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