Inheritance Tax Planning

“In this world, nothing can be said to be certain, except death and taxes” Benjamin Franklin

There are numerous ways to mitigate Inheritance Tax Planning (IHT), but we find that the majority of cases utilise a combination of the following:

  • Gifting
  • Whole of Life Assurance
  • Loan Trust
  • Discounted Gift Trust
  • Flexible Reversionary Trust
  • Business Property Relief

There is much to be discussed, but the main issues of IHT planning fall in to 5 main headings:

  • Access – can you get to the money again if you need it.
  • Speed – how quickly can the plan be effective to shelter from IHT.
  • Simple – Is the solution easy to understand and straight forward in terms of structure.
  • Control – Can you still control how and whether the money is spent following the transaction.
  • Cost – How much is the plan going to cost over your lifetime.

How each of the solutions fare in relation to these issues is indicated below using a traffic light system; green being the most favourable.

Please note: this graphic is subjective to change, not every expert will agree on the distribution of colours. There is much more to know before you act and that you should always seek financial advice first.

“I’d like somebody to get rid of the death tax…. If I give something to my kid, I already paid the tax. Why should I have to pay it again” Whoopi Goldberg

Please see elsewhere in the site for more information or feel free to contact us.


IHT Calculator
0800 093 4115