In this article, a financial and wealth lawyer offers tips on how to avoid being charged inheritance tax. Avoid paying inheritance tax by transferring assets outside of your estate to people who don't reside in the UK or Europe. If you are the sole recipient of an inheritance, you may have to pay federal inheritance tax.
Inheritance tax is a tax that is paid when a person dies and leaves property or money to someone else. Inheritance tax can be a big surprise for people who are not expecting it, and it is often the biggest expense that someone will have to deal with in connection with their death. You can also get expert advice on inheritance tax planning and trusts in London online.
There are several things that you can do to avoid paying inheritance tax. The first step is to make sure that you have an accurate estate plan in place. This plan should contain details about your assets and your wishes for how they should be divided after you die. Your estate plan can also help you reduce your taxable estate by excluding certain assets from the calculation.
You can also reduce your inheritance tax burden by gift-immediately assets to your loved ones. This means transferring the ownership of the asset to them immediately, without having to pay any capital gains or inheritance taxes on the sale.
You may also be able to reduce your inheritance tax liability by making charitable donations in your name before you die. Finally, you can receive property as a gift and then sell it without giving any consideration to inheritance tax.