Inheritance Tax Planning and your Priorities
Before any Inheritance Tax Planning is undertaken, there are certain fundamental considerations that should be incorporated into your strategy:
Be realistic
This cannot be over-emphasised. Do not think of tax savings as your prime motivation. Inheritance Tax Planning is about passing the proceeds of an estate to chosen heirs or to beneficiaries rather than to Her Majesty's Revenue and Customs (HMRC). However, this should never be at the expense of maintaining an acceptable lifestyle.
Be flexible
Plans may need to change in future due to:
- Legislation changes
- Changes to or the addition of beneficiaries
- Changes in your circumstances
At all costs, avoid taking irrevocable actions now unless absolutely necessary.
Keep things simple
In view of the complexities involved with Inheritance Tax Planning, if a simple solution can be found, it will usually be the best solution.
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