When we start out in our working lives we all look to work as hard as we can, so we can enjoy life to the full. For some this is going on lovely holidays all over the world, for others this is being able to treat the family and for some it is simply the knowledge that they have earned the right to enjoy themselves in later life. And with any luck, over the course of time we will start to accrue lots of assets, be it the family home, a nice car or, in some circumstances, an inheritance from a loved one.
However, all these nice things could end up creating a bit of a headache in later life as they might attract an inheritance tax bill. That said, with careful planning it could be possible to manage any potential inheritance tax bill that may come your way.
Of course, one of the best ways to make sure you don’t attract an inheritance tax bill is to spend it! However, more often than not we see clients who want to make sure their family can also benefit from the fruits of their labour. One way of doing this is to take advantage of the annual small gift allowance, currently £3,000.00 per year. Or with some trust planning you could ensure your loved ones benefit from your hard work without the fear that some of the assets will end up with the tax man.
There are many other options out there to consider and if you would like to talk to one of our friendly and experienced Financial Planners to explore which option is best for you then please contact our office on 01778 342291 to arrange a FREE initial consultation.