Ensure and insure your IHT bill is nil
Potentially Exempt Transfers (PET)
You may have read our recent Inheritance Tax Update article
with a few ideas to remind you how to keep your IHT as low as possible, or better still, reduce it to zero.
With bad planning, IHT can be a nasty hit for your family and loved ones. However with proper tax planning there may be no need for your estate to part with anything on your death.
The PET means any gift made outside of seven years of your death are exempt from IHT. In summary, gift the money and live for at least seven years and there is no IHT implication.
IHT – Decreasing Term Insurance
If you die before the seven-year mark then the IHT is calculated on a sliding scale.
One way that you can prevent the IHT, even if you die within seven years of the gift date, is to take out “Decreasing Term Insurance” that essentially covers the amount of IHT due on the sliding scale.
Discuss this further with a professional, specialist financial advisor for the dental sector. Call us for a recommendation – 020 7376 9333