Plan now to reduce inheritance tax

Tue, 08 Jan 2008

It is important to start planning "sooner rather than later" when it comes to inheritance tax , says one expert.

Alex Pegley, director of financial advisors Calculis, said that although recent changes to the inheritance tax threshold had relieved some of the potential burden, some might need to take further steps.

He said: "The starting point is still, as it always used to be, to put in place discretionary will trusts. Because that way you're actually controlling the assets from beyond the grave."

He said that such planning had two aims, one was to reduce the tax burden on your family and the other to make sure things were as simplistic as possible for your family when they administer your estate.

Mr Pegley added that inheritance tax planning was a case of "building and adding and assessing things" rather than putting together a one-off plan.

Inheritance tax is paid on individual estates worth more than £300,000. Last year the government announced that it would raise the tax-free threshold for married couples to £600,000
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