Killik Explains: Five ways to reduce inheritance tax

If you don’t want to leave a big chunk of your wealth to the government, you need to reduce your “death estate”. Tim Bennett looks at how to do it.
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[@Carpathianrelinquished]

We are now having to go through this with my fathers estate. We are in NZ which doesn’t help. The UK inheritance tax is a disgusting double dip of tax on people who have saved all of their lives and that saved money has already been taxed? So what does that boil down to then about 70% tax all in all after both tax deductions. One at the time of earning and the other when it has to be divided up re inheritance tax deductions. Disgusting taxation. Even if my dad gifts to us the only way he avoids tax is if he stays alive for another 7 years or we will have to set aside 40% in tax if he does die. All Govts are great at taking money away from the public and spending it on garbage and dossers.

[@patbateman2088]

Good video. There are so many ways to avoid IHT. My favourite one is NOT using defined contribution pensions for retirement and as iht-exempt tools instead.

[@imrankayani1000]

Great video

[@alexk3948]

What about using a specialist life insurance policy?

[@williamkz]

Good question. If you put a whole of life assurance policy in trust for your beneficiary, the policy and benefits are out of your estate and the benefits will be paid tax free to the beneficiary without the need to wait for probate. Some life assurance companies will help you to do this at low cost. There are also 'investment bonds' that can be put in trust. These are slightly more complex, although fundamentally investment bonds are just whole of life policies designed to grow through managed funds.

[@faa8882]

Can't fins your video about excempt gifts for IHT.

[@phillipmackenzie1646]

What possibilities is there to avoid iht after they have passed. And left the estate to the two children

[@chairmakerPete]

Whatever you build and pay for with taxed income during your life is still 40% owned by the government. Did you think income tax, national insurance and VAT were it? 🤔

[@Carpathianrelinquished]

People know about this so it’s always about how to avoid paying for it. This is a double dip taxation and it’s f wrong.

[@darrenbairstow6153]

You say that IHT as to be paid 6 months after probate. But you cant be granted probate until you pay IHT.. this is what is says on the .GOV site... confused

[@williamkz]

IHT needs to be paid 6 months after death (not the granting of probate), unless you can get an extension from HMRC.

[@ronaldwilliams9204]

What about making a will?