The Christmas & New Year break time is always the time when families get together and begin making key succession and/or strategic business decisions that may affect their current or future tax liabilities.
According to a 2016 IHT survey done by Canada Life, 78% of people thought that wealth should be passed from one generation to the next without any tax being due, yet the fact is that many don’t understand the completely legitimate ways they can reduce their family’s inheritance tax bill!
The increase in asset values, specifically family homes and investment property, means more families are being caught out. The Canada Life survey also suggests that many families are ignorant to what assets will actually be taxed on death. The figures are staggering:
- 24% of people believe their home is not subject to IHT
- 28% of people thought their cash, savings and investments were not subject to IHT.
- 42% of people thought ISAs were not subject to IHT and;
- 51% of people thought pension savings were not subject to IHT.
What this shows is that many families are sleepwalking into a problem and leaving a legacy of tax liabilities and disorganisation for the next generation if they don’t consider careful and strategic planning.
If you would like to discuss the above then please contact us to discuss if we can be of assistance with estate and succession planning.