Tips To Avoid Inheritance Tax Upto 50%
Inheritance tax is a tax that applies to property, gifts and assets transferred during someone's lifetime. In order to avoid inheritance tax, it's important to understand all the different ways it can be levied, as well as the steps you need to take to avoid paying it.
There are several different types of inheritance tax, which can be a major headache for those who inherit money. If you're not aware of your options, you may end up paying more than you should. If you are interested in avoiding legacy tax at all, there's one option you can consider – funding an Inheritance Shelter Trust.
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This type of trust offers significant benefits for those who inherit money: it can reduce your taxable estate by as much as half, it can protect your assets from probate court proceedings and it can keep your funds out of government hands (taxes paid on money in personal accounts are much higher than taxes paid on funds in trusts).
The best way to avoid inheritance tax is actually to inherit something that's already been taxed – like stocks or property – rather than cash or shares in a company that may still be privately owned when you die. Make sure that your inheritance is written down and legally binding – this will make it easier for you to prove who owns what after your death, and avoid any nasty disputes between family members.
Use a solicitor to help you draft up a wills and trusts – these will ensure that all your assets are placed in the correct hands before you die, and reduce the chances of complications ensuing after your death.