A recent report by Direct Line shows that, in an attempt to reduce inheritance tax, 1/5th of parents have made gifts to their children. The idea being that their estates would be reduced and the families will not have to pay inheritance tax on their death.
The report states that approximately £227 billion has been transferred by parents to reduce future taxes. It also revealed that parents who have not yet passed assets to their children are considering doing so in the future. This inheritance tax planning tactic can also be used by divorcees who wish to ensure that their assets are passed to their children rather than to a new partner.
When considering gifting assets as part of inheritance tax mitigation, families should be aware of all the potential tax implications and should take specific tax advice. The Private Client team at Gepp Solicitors are able to assist you with all your tax concerns.
If you would like further advice, or wish to speak to someone about how to best reduce your inheritance tax liability, please contact the Private Client team on 01245 228127 or privateclient@gepp.co.uk.
This is not legal advice; it is intended to provide information of general interest about current legal issues.
