Inheritance Tax and Gifts

The “possibility of tax-free transfers” is one of the most widely used tactics for lowering inheritance taxes. Provided you survive at least seven years after the date on which you gave money as a "gift" to your beneficiary, this means that not only will your loved ones benefit during their lifetime, but the final amount may be taxed on your property upon your death. be reduced. You can get the best advice of inheritance tax at https://inheritance-tax.co.uk/area/inheritance-tax/.

Potentially cash-exempt transfers are not the only part of your assets that are exempt from inheritance tax. The fund is also available in the form of a trust fund for children who have only had access to the fund since the age of 18. They are known as "naked trusts" and are one of the few trusts that do not collect inheritance taxes.

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Other trusts are generally considered to be paid for lifetime transfers. Money held in this trust is also exempt from inheritance tax up to the tax limit, but 20% above this rate, with an additional 20% payable if your death occurs within seven years of your grant.

Some prize money is considered non-taxable regardless of the time between the gift and death. This includes wedding gifts for your children (up to €5,000 each), grandchildren (up to €2,500 each) and for each other (up to €1,000), gifts for charities and volunteers, and gifts of any value. up to €3,000 per year.

Without effective professional tax planning, most of your savings and assets could be lost to inheritance taxes. When you have accumulated significant assets, it is time to start your financial planning. That way, you can be sure that the people who are benefiting from your property are your relatives and who need financial assistance the most, not taxes.