Why Understanding Inheritance Tax is Crucial — Even if You Think It Doesn’t Apply!

When I mention inheritance tax, people usually have one of two reactions.

Either a sense of unease or a feeling that this does not matter to them.

If you plan to build a life of time and financial freedom, inheritance tax will almost certainly come along at some point, particularly if you are keen to leave your inheritance to your loved ones after you’ve gone.

Proactive planning is key. The earlier you address the inheritance tax issue, the easier it is to manage. By taking steps now, you could potentially save your loved ones from a significant financial burden.

If your estate exceeds £325,000, a 40% tax could apply to the excess. But rest assured, you’re not alone in this. There are legal ways to reduce or even eliminate this tax liability, providing you with peace of mind.

This blog looks at inheritance tax and how it works in the UK. Most importantly — strategies to minimise the tax and keep more of your hard-earned assets within your family.

What is Inheritance Tax?

An inheritance tax is a tax on the estate of someone who has died, including their property, money, and possessions. In the UK, the standard inheritance tax rate is 40%…