Inheritance Tax Planning – What About Pre-Inheritance?

Posted on May 11, 2022Categories Business and ManagementTags ,   Leave a comment on Inheritance Tax Planning – What About Pre-Inheritance?

Many fantasies were realized that involved traveling to exotic places, cruising, or buying boats or whatever else appealed to you. But the latest research has shown that a lot of wealthy parents have made the decision that instead of just believing that their children will inherit their inheritance when they pass away they're increasingly keen to give the children now.

Aviva the insurance giant, has conducted a survey about this topic. The results have revealed that half of UK adults have received the gift of inheritance from parents. This compares to a lower number of less than one-third of people who have given money from their parents' will upon their death. You can visit https://inheritance-tax.co.uk/area/inheritance-tax/ to know more all about inheritance tax.

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They looked at which groups were the most benefited in the end, and it was evident that the 18 to 25 age group was the most benefited and was followed by the 31-40 age group. It is likely due to the expense of university debt, gaining access to the housing ladder, and later beginning a family.

If you make a gift in the sum in a lump sum for your children, it's called an Exempt Potentially Transfer (PET) and, if you are able to survive for 7 years, there is no inheritance tax (IHT). If you don't survive during this time, but your total estate (including the donation) is lower than PS650k (for two people) the same thing happens.