How can I effectively plan for inheritance tax?

How can I effectively plan for inheritance tax?

Planning for inheritance tax involves understanding your estate's value and potential tax liabilities. Have you started assessing your assets?

Yes, I have a rough estimate of my assets. What are the main factors that affect inheritance tax?

The main factors include the total value of your estate, any gifts made during your lifetime, and the tax-free thresholds. Are you familiar with the current thresholds?

Not really. What are the current thresholds for inheritance tax?

In the UK, the current threshold is £325,000. Anything above this may be taxed at 40%. Would you like to know about ways to reduce your taxable estate?

Yes, please! What strategies can I use to minimize inheritance tax?

You can consider gifting assets, setting up trusts, or making use of annual gift allowances. Each has its own rules and benefits. Would you like more details on any specific strategy?