Inheriting money & Inheritance Tax

At some point in our lives, most of us will inherit something, and many are fortunate enough to inherit substantial sums of money. Whatever the situation, many problems can occur after death, such as family arguments, lengthy probate processes and large inheritance tax bills.

Even simple planning can help reduce and sometime mitigate these problems.

Here are a few statistics:

• In the tax year 2018 to 2019, 3.7% of UK deaths resulted in an Inheritance Tax (IHT)*

• IHT receipts received by HMRC during the tax year 2020 to 2021 were £5.4 billion*

These statistics are startling, and given that IHT is sometimes referred to as a ‘voluntary tax’, why not smooth the process for your beneficiaries?

Here are some things you can potentially do:

• Make your wishes clear to your beneficiaries before death

• Implement plans that reduce the IHT liability

• Use Trusts

For those fortunate enough to inherit significant sums, this money can be used to help achieve your own life goals.

For a free discussion with an Adviser, please contact us.

*Source: HMRC, (2021). Inheritance tax statistics: commentary. Available at: https://www.gov.uk/government/statistics/inheritance-tax-statistics-commentary/inheritance-tax-statistics-commentary