Simon Dawson, the Chief Commercial Officer for inheritance loan provider Legacy Release has issued a warning that Britons should “start planning now” when it comes to IHT gifting. Any Inheritance Tax which is due on gifts is usually paid by the estate. However, this is not the case if the deceased gives away more than £325,000 in gifts seven years before their death. While this is a popular way of preventing one’s estate from becoming a victim of the tax man after their death, experts are continuously calling on people to do their research before opting for this money saving measure.
“If you can start planning seven years in advance of you dying, although you may not have a crystal ball, this enables you to transfer a significant amount of wealth over to the loved ones in the next generation.
“This is exempt from IHT because within that seven years there’s an escalating level of Inheritance Tax exposure.”
Outside of passing assets down to loved ones, the inheritance guru emphasised how placing money into trusts can be equally as tricky when it comes to IHT.
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