A Guide To INHERITANCE TAX - St James's Place

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Pensions and life assurance Pensions and life assurance plans can also be of great benefit in reducing an IHT liability. Death benefits in modern pension plans are broadly exempt from IHT and provide retirement income for the spouse or civil partner. Whilst investment in a pension is therefore an indirect method of mitigating IHT, it is crucial that the supporting trusts are in place for funds to pass to the beneficiary. Life assurance plans are uniquely placed to provide a taxfree cash sum to meet any IHT liability, but because they may also form part of your estate or that of your survivor, they should normally be written in trust. Under these circumstances contributions to the life assurance plan will be transfers of value, but will generally fall within the normal expenditure out of income exemption or the annual exemption.
Summary It is better to do something sooner rather than later to ensure your heirs don’t have to face an unnecessarily large IHT bill when you die. With careful planning and an effective Will, you can help save IHT by making the most of the various tax reliefs and other strategies available.
Page 1 and 2: A Guide to INHERITANCE TAX PARTNERS
Page 3 and 4: Inheritance Tax - some facts Whethe
Page 5 and 6: Inheritance Tax what it means to yo
Page 7 and 8: What to do about Inheritance Tax Th
Page 9 and 10: Using trusts A suitably worded trus
Page 11: Tax efficient funds The Alternative
Page 15 and 16: We do not believe in off-the-shelf

A Guide To INHERITANCE TAX - St James's Place

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