Why Do I Need Education on Inheritance Tax Planning?
Another aspect of financial planning is setting up an Inheritance Tax (IHT) Plan. It’s form of end-of-life planning that can be quite complex, especially when the estate you’ve gathered over the course of your life consists of a variety of assets, such as one’s home and contents, vehicle(s), shares or investments, jewelry and other valuable possessions like for example pieces of art, possibly foreign property, et cetera.
Research performed by Time Investments showed 36 percent of the surveyed persons aged 55 with assets over the Inheritance Tax threshold had not yet considered inheritance tax planning. This lack of IHT planning could affect the beneficiaries in one’s will considerably.
Estate Planning is an important factor of Inheritance Tax Planning as in most cases property is the most valuable asset people own, and therefore understanding how IHT will affect your estate is crucial.
Like nearly all forms of financial planning, IHT benefits from early planning. Yes: the sooner, the better! Especially when you think your estate will have to pay inheritance tax. Inheritance Tax Planning is – as we mentioned earlier – quite complicated, and you should consult with an advisor regarding your own specific situation. This will prove worthwhile, as there are a number of possibilities to avoid or limit inheritance tax if you start planning ahead early on in life, such as gifts to your children, charity donations, family trusts, insurance, or special investments. There might be options you might not be aware of.
Educate yourself on Inheritance Tax Planning and talk to a professional, so your loved ones won’t be lumbered with the results of your lack of IHT Planning.
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