Is it too late for Inheritance Tax planning after death?
The now famous quote from Benjamin Franklin that there are only two certain things in life: death and taxes still holds true.
As tax advisors, we are often in a situation where we have to deal with both at the same time as death is also a trigger point for various taxes, inheritance tax (IHT) being the obvious one. Understandably, many families do not want to consider tax when they are mourning their loved one and so effective IHT planning is best done during one’s lifetime.
Having said that, in the real world very few people ever get beyond a simple will and many do not even get that far. Whilst a will is a good first step, many are very simply drafted and miss opportunities for effective Inheritance Tax planning. This is especially the case for families who own a family business.
However, even after death, it is not too late to resolve your family’s IHT position.
Planning after death is possible and effective. A deed of variation within two years of death can change a will and gives a window of opportunity to arrange a family’s affairs in a more tax efficient way. We have helped numerous clients to significantly reduce their IHT liability in this way.
If you think that this might be relevant to someone in your family please feel free to get in touch for a free no obligation discussion.