Inheritance tax planning with Wansbroughs

legal & financial THE MAGIC NUMBER 7 & WHY IT MATTERS FOR ESTATE PLANNING

Tom Britten, a Managing Associate Solicitor at Wansbroughs, considers lifetime gifts and how they might be a useful way to reduce the amount of inheritance tax (“IHT”) payable on your death.

“Certain gifts, such as those made to a spouse / civil partner or gifts made out of excess income, are exempt from IHT. You are also able to give away up to £3,000 (cash or assets to that value) in each tax year without incurring any IHT consequences.

“Another class of gifts exists – those that may or may not be subject to IHT depending upon whether or not you survive for 7 or more years from the date of making the gift. These gifts are known as potentially exempt transfers (“PETs”). If you survive for 7 years after making a PET it will become exempt and there will be no IHT considerations for your estate. However, if you die within 7 years of making a PET it will be taken into account when calculating the IHT due from your estate.

“If you would like to discuss estate planning, please call 01380 733300 or email the Private Client team at wealth@ wansbroughs.com.”

• wansbroughs.com

Managing Associate Tom Britten