Inheritance tax is a tax imposed on the estate of a deceased person. It is based on the value of assets and property left behind and is typically paid by the beneficiaries of the estate.

Inheritance tax planning involves taking measures to minimize the tax liability on your estate, ensuring that more of your assets are passed on to your beneficiaries rather than being paid as taxes.

Inheritance tax can often be a significant burden on your loved ones. By engaging in inheritance tax planning, you can reduce or eliminate this burden, ensuring that your beneficiaries receive the maximum benefit from your estate.

There are several strategies you can employ to minimize your inheritance tax liability:

• Make use of annual exemptions: In many countries, there are annual exemptions that allow you to gift a certain amount of money or assets each year without incurring inheritance tax.
• Utilize tax-efficient investment vehicles: Invest in tax-efficient vehicles such as ISAs or pensions that may be exempt from inheritance tax or provide tax advantages.
• Consider trusts: Setting up a trust can help you transfer assets to your beneficiaries while potentially reducing your inheritance tax liability.
• Make use of exemptions and reliefs: Familiarize yourself with any exemptions or reliefs available in your jurisdiction and take advantage of them to minimize your tax liability.
• Seek professional advice: Consult with a financial advisor or tax specialist who can provide guidance tailored to your specific situation and help you navigate the complexities of inheritance tax planning.

It is never too early to start inheritance tax planning. The earlier you begin, the more options you have available to you and the greater potential to minimize your tax liability. However, even if you have not started early, it is still worth exploring strategies to reduce your inheritance tax burden.