Despite the economic downturn and subsequent decrease in property prices, inflation effects over the past decade have meant most people's largest assets are still property-based. This can be a problem from an inheritance tax (IHT), as giving away property can lead to a host of problems. You can find the best tax planning lawyer from various online resources.
IHT revenue is expected to bring in PS4 billion for the UK government this year. A large portion of this comes from property sales. There are many ways you can save money or even avoid IHT altogether.
Most often, IHT is complicated by the emotion involved in the proceedings. It is important to mention that the plans are being made in order to allow the asset to be retained in the most tax-efficient way.
First, you must mention that you can't transfer a property free of charge while still living there. You will be on the radar for the HM Revenue and they will make a claim against your property.
It is important to make sure you have a Will. Keep it up-to-date. According to IFAP, over three quarters do not have a current Will. People with high net worth should be aware that trust and other issues can be created through the Will.
If you are careful about how your funds are used, equity can be an efficient way to reduce IHT. It is important to note that the IHT savings will be outweighed by the accrued interest. This strategy is very risky and dependent on survivorship periods.