Inheritance tax (IHT) is chargeable at 40 percent on the value of a person’s estate above a specific threshold – usually £325,000. As many have paid tax throughout their lifetime, Britons will generally want to avoid what is often perceived as a “death tax”. But in order to do so, it is important to take action or risk loved ones being left with a financial burden.
Redistributing one’s wealth will be the best way of mitigating an Inheritance Tax bill, and the Bank of Mum and Dad is being posited as a solution.
Ms Ross continued: “What a lot of people forget is that there are a lot of different ways of giving money away.
“The most common is to give money away through Potentially Exempt Transfers (PETs) meaning you can give money away as long as you live for seven years.
“Most people will want to help their children and grandchildren in some sort of way and this could be a good method of doing so, particularly if they have the money.
“Parents or grandparents could use their £3,000 annual exemption, and if they have not used it in the last year, they could go…
