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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4094
Experience:  FCCA FCMA CGMA ACIS
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Regarding inheritance tax, can you suggest any ways of reducing

Customer Question

Regarding inheritance tax, can you suggest any ways of reducing the IHT bill on my estate? Obviously I would like to leave my children as much as possible as I worked long and hard to save for their futures.
I understand that Cameron may or may not reduce or abolish IHT for married couples. What about those of us who have worked had but through no fault of their own are single? i know that's not really your area but it seems grossly unfair. Not all single people are single of their own volition nor do all single mums sit around on benefits.
Rant over.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
IHT kicks in at 325K and anything over that is taxed at a flat rate of 40%. If your estate has over 10% bequeathed for charitable purposes this rate falls to 36%.
The 325K limit is increased by any inter spousal and charitable bequests.
So that is the basics of IHT.
You could also consider giving some of your assets away. If you do that you create a Potentially Exempt Transfer (PET). PETs run off at a taper over seven years and are added back to your estate, but at the tapered rate, for IHT purposes should you die within this period.
I do hope that I have given you some food for thought.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you. I'll look into that.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance. of course you could get married [joke]!
Please be so kind as to rate me before you leave the Just Answer site.
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.