Financial planning ‘essential to avoid inheritance tax’

Posted 27/09/2009

Consumers have been advised of the key role that proper financial planning can play in reducing their liability to large inheritance tax payments.

A new report in the Daily Mail has called on people to take steps to protect their legacies from potential increases in inheritance taxation, which could be made necessary in the current economic climate.

As a result, it was recommended that particular care be taken over keeping thorough and accurate financial records in order to establish the value of estates, as well as the role wills could play in alleviating any potential tax bill.

Those looking to minimise the financial impact of such levies were advised to take full advantage of their annual tax-free gift allowance.

The newspaper also reminded consumers to regularly review their wills to ensure they are up to date with current inheritance tax law and to rewrite them if necessary.

Earlier this month, the Guardian recommended writing wills as a means of ensuring that dependents can claim their inheritance without encountering unnecessary complications.