Personal finance reporter for the Telegraph, Harry Brennan, says thousands of people could be unnecessarily paying large inheritance tax (IHT) bills each year because a once widely used tax loophole has been largely forgotten.
In 2007, a new rule made it possible to transfer unused allowances between spouses when one partner died. Prior to this, many people used nil-rate band trusts to ring-fence up to £325,000 to pass on to their spouse free of tax on their death.
Although the transfer of allowances has meant this practice has more or less died out, widowed spouses who remarry can still give themselves an additional IHT allowance of £325,000.
Professional advice should always be sought to protect your wealth, secure the financial future of your beneficiaries and plan for IHT, a legitimately avoidable tax.
Our Beavis Morgan tax experts are available to guide you and advise you on the available strategies.
Contact Barrie Dunning or your usual Beavis Morgan Partner.