Inheritance tax checklist

Inheritance tax

Inheritance tax checklist

By Ian Robinson

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Inheritance tax checklist

Here are some key points to consider when you come to assess your estate's inheritance tax (IHT) liability and how much your heirs may have to pay. 

  • The main ways to avoid IHT are to spend your money while you're alive or give it away.

  • Work out how much IHT might be due on your estate and regularly review it so you know what you're up against.

  • Find out if the new rules apply to you - IHT may no longer be a problem.

  • If you set up special wills to deal with IHT go back to the firm that set them up to see if they are still relevant.

  • Make full use of any tax-free gifts you can make while you're alive.

  • Put life insurance policies under trust.

  • If there's going to be a big IHT bill, think about taking out an insurance policy under trust for your heirs to pay the bill.

  • Make a will if you don't have one - otherwise the people you want to inherit may not.

  • Never take steps that might leave you struggling for money while you're alive in order to save tax after you've died.

  • Remember - IHT is really someone else's problem, not yours.

 

  • Last updated: April 2016
  • Updated by: Ian Robinson