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Any guides on passing your money and property on without your heirs paying a fortune in inheritance tax?

30 November 2021

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Question by Derek

Have you any simple guides to passing your money and property on without your heirs paying a fortune in inheritance tax?


Answered by Joshua Gerstler

Hi Derek,

The first step is to ensure you have enough money for your own needs for the rest of your life.

Once you have confirmed that, then we can look at the best way to pass it into your heirs.

A few quick wins:

  1. The first gift of £3,000 per year should not incur IHT

  2. Gifting to £250 per heir each tax year should not incur IHT

  3. Gifts from your income (rather than your capital) should not incur IHT, as long as it does not affect your lifestyle

  4. Wedding gifts of £5,000 per child should not incur IHT


There are lots of other ways we can mitigate IHT and which options are available will depend on your personal circumstances.

I hope this helps you get started and do feel free to get in touch.

Josh

Answered by

Joshua Gerstler

Chartered Financial Planner

I have been working in Financial Services for over 16 years. I started out at Deloitte where I trained and qualified as a Chartered Accountant before moving to Financial Advice/Planning at The Orchard Practice in 2011.