Top inheritance tax planning tips

Review your Wills in light of recent changes to the law - they may now not work as you once envisaged!
Review lifetime trusts following The Finance Act 2006 to see if they are adversely affected by the changes. There may be an opportunity until 5^th October 2008 to move wealth down to the next generation without causing an inheritance tax charge.
Make use of the often overlooked normal expenditure out of income IHT exemption - turn off the tap which increases the taxable estate. Also, make use of the IHT annual and small gifts exemptions - husband and wife can double up!
Review pension funds to ensure death benefits are dealt with in an IHT
efficient manner.
Review death-in-service arrangements for the same reasons.
Consider purchasing tax efficient investments which are exempt from IHT
after 2 years.
Make good use of IHT Business Property Relief and/or agricultural property relief - do not waste it under the Will and look to recycle it thus getting the benefit of it twice!
Consider redirecting any inheritance received in the last two years that is surplus to requirement by Deed of Variation.
Consider setting up lifetime relevant property trusts.
Consider incorporating a discretionary trust over your residuary estates via the terms of your Will - such a structure can offer protection in the event of the divorce and/or bankruptcy of an intended beneficiary.

If you require further advice or assistance please contact the Private Client department at Higgs & Sons by calling 01384 342100.