Reducing an Inheritance Tax – it’s good to give
A n estate can pay Inheritance Tax at a reduced rate of 36% on some assets (instead of 40%) if 10% or more of the ‘net value’ of their estate is left to charity.
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Category: Retirement
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What a relief
Assets that pass on free of Inheritance Tax
Inheritance Tax reliefs allow some assets to be passed on free of IHT or with a reduced bill.
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Gifts
Small gifts that don’t create an Inheritance Tax liability
HM Revenue & Customs allows you to make a number of small gifts each year without creating an Inheritance Tax liability. Remember, each person has their own allowance, so the amount can be doubled if each spouse or registered civil partner uses their allowances. You can also make larger gifts, but these are known as ‘Potentially Exempt Transfers’ (PETs), and you could have to pay IHT on their value if you die within seven years of making them.
Estimating how much liability you could leave behind for your loved ones
Usually the ‘executor’ of the Will or the ‘administrator’ of the estate pays Inheritance Tax using funds from the estate.
Reducing your beneficiaries’ potential Inheritance Tax bill – or mitigating it out altogether
With careful planning and professional financial advice, it is possible to take preventative action to either reduce your beneficiaries’ potential Inheritance Tax bill or mitigate it out altogether.
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History lesson
Inheritance Tax matters
Inheritance Tax was introduced in the UK in 1796 and stemmed from the influence of the French Revolution. The concept of IHT was supposed to protect poorer members of society and interrupt the legacy of inherited wealth.
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Pension wise
Discussing life expectancy as part of your retirement planning is key
P ension Wise, the government’s guidance guarantee service, must discuss life expectancy as part of people’s retirement planning, according to a recent Aviva report.
Spotlight firmly on people rolling over into the holding provider’s own annuity
The Financial Conduct Authority’s (FCA) thematic review into annuity purchases has shone the spotlight firmly on people rolling over into the holding provider’s own annuity.
Two thirds of over-50s plan to lengthen their working lives
Nearly two thirds of over-50s workers would consider retraining so they could work longer in retirement, according to new research from MetLife.
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New landscape for later-life planning
Making informed decisions about how to best use your savings and manage your income in retirement
More than one in four Britons (27%) expect to come under pressure to lend their family money from unlocked retirement pots when the new pension freedoms are introduced from 6 April this year, according to latest research from the Centre for the Modern Family.