Without the guidance of a lawyer or financial adviser, inheritance tax can cost your family up to thousands of pounds. Unfortunately, because many people think it’s too complicated, they just choose to pay the set amount without doing anything about it. 

By working with an expert, you can avoid paying that hefty price in tax. To give you some idea of how you can do this, here are some tips for you: 

Planning Ahead

Inheritance Tax can be nasty for your family if you don’t plan ahead. To avoid this, you need to have a good grasp of your finances. This will make it a lot easier to plan how to avoid paying Inheritance Tax and take steps to prevent this. You can also find practical help by contacting an expert. This way, it will be much easier to work out how much Inheritance Tax you will have to pay.

You can use tax planning to reach your goals for the future. This can be done by including your children in the planning process.

Trusts and Annuities

You can use the tax rules to put property and money into a trust for your family. This can protect it from inheritance tax. You can also use trusts to protect wealth from creditors, future spouses, or business partners. However, you need to work with an expert. They will be able to work out how to ensure that your trust is successful.

Using a trust to get around inheritance tax is a way to avoid paying this. It’s also possible to use trusts to pass the money onto children during their lifetime. This will be a lot easier to manage than setting up a trust at the time of your death.

Changing a Will After Death

You might not know it but you can change your will after death. Some people find this a good way of making sure they don’t pay too much inheritance tax. A will is one of the easiest ways to save your family money by avoiding inheritance tax. However, even if you have a will, you still need to make sure that it’s written in a professional and legal way.

Leaving Money to Your Children

It’s possible to leave money to your children and pay less Inheritance Tax. If you want to find out more about how to do this, you need to plan ahead and ensure that your children are financially secure. That said, if you don’t make proper plans, they could lose a lot of money. This is why it’s worth working with an expert to make sure you don’t make a mistake.

Conclusion

Inheritance tax can be a big problem for your family if you don’t do something about it. If you want to avoid paying taxes, you need to plan ahead. You can make a plan with your children, or you can work with an expert to get around it. You can also work with a pro to make sure you don’t make a mistake when changing your will.

Wills and Probate can help you understand everything you need to know about inheritance tax in the United Kingdom and help you plan so your family won’t have to handle the burden of a hefty inheritance tax. Contact us today to set an appointment!