Common IHT Questions

Inheritance Tax. Card and keys with key chain in shape of house

We get many questions about IHT tax and how to minimise HMRC’s take from an estate. Below are just a few.

How much can I give away?

That is very much based upon personal circumstances. It is important that the client takes care of their own future needs rather than being too generous.

Can I take out insurance to cover the bill?

Yes, but remember it is a cost rather than a saving and the policy must be written under trust to keep it out of the estate and to make sure the beneficiaries receive the money for the tax without the need for probate.

What are the advantages of using Business Relief over a trust?

As well as being able to obtain Inheritance Tax (IHT) relief up to five years faster than trusts, Business Relief also offers investors greater security, does not take away control from their estate, and provides plenty of flexibility to the client.

Can Business Relief be used with a Power of Attorney?

Yes, Business Relief investments allow the client and Power of Attorney to retain control of their capital and investments.

This is a distinct advantage over traditional IHT planning, such as gifts and trusts, which generally requires the agreement of the Court of Protection.

Does Inheritance Tax apply on a person’s property?

Yes, Inheritance Tax applies to a client’s estate. The assets which form part of an estate include any property or business, here and abroad.

Whether an individual’s property is applicable depends on who they leave the property to when they pass away, as well as the overall value of their estate.

We have great experience in IHT planning and would be delighted to answer any questions you may have. Please get in touch.