Avoiding inheritance tax (IHT) that’s not due, is a duty to your family.
One of our obligations as citizens of a democratic society is to pay our taxes.
I doubt you or I would want to live in a land in which folk didn’t pay their taxes.
Nonetheless, I’m yet to see any sense anyone paying more than their fair share.
Inheritance Tax Simplified
Inheritance tax: if your estate exceeds the nil rate allowance (currently £325,000) your estate is taxed at 40%.
That’s where simple ends.
There are hundreds of allowances and exceptions.
But to make the most of them, we need to understand the principle of inheritance tax. It is only by understanding the principle of inheritance tax that we can avoid it.
Once we know the principle of IHT, then we can avoid it.
IHT – Lies and Half-truths
You might have heard ‘they’ve increase inheritance tax allowance to a million pounds’, but that’s sophistry, that’s a half truth, that’s the million-pound trick.
You might have heard of spousal exemption; it presupposes your spouse would live forever.
You’ve heard of ‘gifting’; ‘the 7-year rule’; ‘the 10% threshold’; the small gift exemption and several other wheezes and schemes. These are mere tactics to avoiding inheritance tax. This duty to your family requires strategy as well as tactics.
The Treasury thought things were too simple, with the ‘nil rate band’ so they introduced its bastard cousin, the ‘residential nil rate band’.
Question: how do these allowances relate to you?
Also, how do you protect your business from inheritance tax?
All what you might have heard about avoiding inheritance tax are half-truths, and a half-truth is a whole lie.
The central question of inheritance tax is: ‘How many times would you want your descendants to pay inheritance tax on the property in which you live now’?.
If your answer is: ‘Ideally never, but at worst once.’, then I’m the person to help you banish this curse. Then request your free guide on inheritance tax planning.
Guides on Avoiding Inheritance Tax
The guides on saving or avoiding inheritance tax you might have encountered are designed to keep your money in your family, but, for one generation.
They are tactics, they are short-sighted.
Because, they arise from the sort of thinking that’s ignorant of how the rich avoid inheritance tax.
Many of the guides on avoiding inheritance tax you might have encountered are the triumph of tactics without strategy, which is at best condemning our successors to repeat the tasks at which we’ve laboured. What a waste of effort.
The reason you should care about inheritance tax is its real nature and purpose: inheritance is an almost biblical punishment visited on your descendants several generations into the future until your estate vanishes to nothing.
To keep your wealth in your family, and pay no more tax than you need to, get your fact sheet below.
And of course, there’s my video how inheritance tax really works.