Estate Planning

For those of your fortunate enough to have assets in excess of the nil rate band for Inheritance Tax, which is currently £325,000 per person, then it may be possible to so arrange your affairs as to reduce or even eliminate altogether you liability to Inheritance Tax.   Frequently this involves setting up trusts, but there are a number of ways of reducing Inheritance Tax liability without resorting to Trust law.  However, the tax system is arranged so that in avoiding one tax, you often become liable for another one and therefore it is important to have an eye on Income Tax and Capital Gains Tax and Stamp Duty before making a decision – sometimes it is just a matter of choosing the lesser evil.