Avoid Inheritance Tax With This Plan

Inheritance Tax is often called Britain's most hated tax. This simple solution allows you to deal with it without losing access to any money.

⏰⏰ TIMESTAMPS ⏰⏰
0:00 Start
1:40 The Inheritance Tax 'Savings Plan'
3:13 The Difference Between Life Insurance and Life Assurance
5:18 How To Calculate Inheritance Tax
8:16 How To Choose The Right Inheritance Tax Plan
9:45 Example of Inheritance Tax Plan

**** ABOUT INHERITANCE TAX & HOW TO AVOID IT ****

Inheritance Tax is a tax on your assets when you die. If your estate (the total of everything you own) is above a certain value upon death, your beneficiaries could pay Inheritance Tax of 40% on the excess.

There are many ways to deal with Inheritance Tax, which is often shortened to IHT, including spending the excess capital or giving it away.

Spending capital is sometimes more difficult than it sounds though, particularly if a lot of your estate value is in property, and even when you give money away it still remains part of your estate for 7 years.

The Inheritance Tax plan I discuss in this video though is one way to deal with the issue.

**** DISCLAIMER ****
The content in this video is provided for information and entertainment purposes. It should not be construed as direct or indirect financial advice. You must throughly research any potential financial or investment decision and fully understand the risks before taking it. If in doubt, you should seek individual advice from a professional adviser.

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[robertknott]

Great advise - Proper life planning for you family once we are no longer here 👏👏👏👏

[FlorinVZaharia]

One of the select few youtubers I watch and trust re finance

[chqshaitan]

Great video and explained in plain english

[michaelhennessy]

Great content. The part at the end sounded like you recommend using DGT income to pay WoL plans, but that income would be a return of capital and wouldn't count as a gift out regular expenditure. Perhaps I've misunderstood

[jamesmjonesRF]

I am happy to be corrected on this - but i remember reading, years ago, that you had the option to pay any IHT due, whilst you were still alive, and the rate would be half of the IHT due after you had died.

[paulwright]

Great vid Chris. What I would worry about though is inflation. Scenario - I take out a £250k policy now to pay out on my death in 20 years time and let’s say that the inflation adjusted value of that policy is then £50k. The value of my assets and thus my IHT bill has increased because of the same inflation but this time rather than my IHT bill being £250k, it’s now £450k and so I have a £400k gap that is not covered? Have I missed something? Thanks.

[Jeffybonbon]

Hi is it possible for you to cover ISA freindly investments to avoid IHT Aims shares and funds

[readingpolo]

Hi Chris,

My concern is that if you go on and on living beyond the life expectancy then you still have to keep up paying the premiums. What about care costs that are means tested? Means testing won’t make an allowance for the fact that you’re funding life assurance. You risk having to cancel and throw away all you’ve put into the policy. It seems a bit of a gamble in that you may die in a year, in which case your beneficiaries have won (financially at least) but if you keep going to say 95 then they lose because you’ve paid far more than the death benefit. Are you not better off gifting as much as you can, provided you stand a good chance of living 7 years still?

Thanks

[karaokekingskingdom]

Is the payout from the life assurance from the trust fund liable to income tax by any chance?

[SMarkGee]

ty, surprising ho wmany people don't know about the £1m tax free on inheritance (in the circumstances that you cite)

[SandgateandCaboRoig]

What age should you start planning for IHT

[iainamurray]

Why second death and not first? If it’s first death then you don’t have to pay the premiums anymore and the sum assured is in the trust?

[mikeroyce]

Would you believe that in Italy spouses and children only pay 3% inheritance tax? That sounds better than paying 40%

[successsystem]

Hi I'm still unclear how you reached the 1m tax free threshold figure.
Is it that the 2nd surviving spouse inherits 325k + 175k from the deceased. Plus her own, so she has a total of 1m tax free? I thought it was just 1 tax credit of 325k for one house? It doubles if you co-own it? The 175k revate applies roncash and other non residence assets I assume? Also are these WOL policies similar to many American advisors who say open one and "become your own bank" ? Many thanks in advance.

[ianreed]

Hi. My understanding is that you are allowed to gift £3k per financial year IHT free and if you didn’t gift last year, you could gift last years and this year’s together. So what is to stop someone giving a huge gift and stating they are using their unused years dating back to their birth date?

[shreeradhe]

Hi Chris, we have a discretionary bond with loan trust for estate planning purposes. For money laundering reasons, these sort of trusts need to be registered with HMRC and there's a deadline of 1st September 22..

I've worked out that it is an 'Express Trust.' On completing the HMRC online form, they ask if you will pay tax on the trust during 2022/23 tax year. As it is deemed that tax has already been paid on the payment received from the bond and there's no more tax to pay. I assume the answer to this question is No. Is that
correct? I look forward to hearing from you. Regards Shree
'

[richardlove]

Buy gold and tell no one about it, pass it on to your people as you see fit. Out of the system is where you need to be.