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Britons 'are using wealth management to beat inheritance tax' |
Britons are increasingly using wealth management techniques to prevent their assets from becoming subject to inheritance tax, it has been found.
The Daily Mail reports that a large proportion of people in the UK are now gifting money while they are still alive, rather than leaving it to beneficiaries in their Wills.
As long as the donor lives for seven years after the gift is made, it is exempt from inheritance tax. However, people who hand down assets in the traditional way will find that the estate will be subject to the so called 'death duty' on anything over £325,000.
Aviva found that 50 per cent of the people who received a 'pre-inheritance' listed their parents as the benefactors, while 25 per cent said the gift was from their grandparents.
Financial expert Clive Bolton told the newspaper: "People are living longer, so when they actually think about what this means for their beneficiaries, they may decide they want to pass on some of their wealth sooner."
The wealth management experts at KCJ can help with the careful planning and regular review of your financial affairs, no matter what your assets or personal circumstances.
Simon Crooks, who heads the Wealth Management team at KCJ, adds: "There is currently speculation that the Chancellor may tighten up on the rules relating to lifetime gifts. Anyone whose estate could be liable to inheritance tax and is considering making a lifetime gift in the current tax year, but has not yet done so, should consider doing so before the Budget on 23rd March 2011 rather than leaving it until the first few days of April in case changes are introduced "with immediate effect"."
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