Inheritance tax is otherwise known as IHT. This is the amount of tax the beneficiaries may have to pay if someone’s estate. This is the amount of tax that someone must pay when they die. The value someone has to pay mainly depends on the value of their estate. The estate is the combined value of all someone’s belongings, cash, as well as property. Some of the facts about the UK inheritance tax planning have been discussed in this article.
Top facts to know about inheritance tax planning
There are few things one can do before they die, to help in reducing the likelihood of the thresholds which can be exceeded. This is mainly known as inheritance planning. This can help any person in systematically managing their wealth to maximize the amount of their beneficiaries gain.
In case someone has passed away, someone might be able to reduce their tax liabilities to a greater extent. There are some of the below options for doing the same.
- One can give their assets as a gift to their spouse or partners. The total financial value of the gift will not be considered as part of their estate.
- One can give their assets as a wedding gift to their children.
- The assets which are being given as a charity won’t be considered as part of someone’s property.