Your pension and Inheritance Tax (IHT)
Planned 2027 changes may bring unused pensions into an individual’s estate, ending current IHT protections. Uncertainty remains, but pension savers should review plans with advisers now to stay tax-efficient and ensure you are prepared when full guidance is released.
Introduction to Inheritance Tax
Inheritance Tax (IHT) has come under the spotlight over the past few years, due largely to the continued rise in house prices. These days, you don’t have to be hugely wealthy to be affected by IHT.
IHT recap – get up to speed on gifting allowances
IHT receipts rose to £4.3bn between April – September 2024. Use gifting allowances like the £3,000 annual exemption, wedding gifts, and small gifts to reduce estate value. Regular gifts from surplus income can also be exempt, but documentation is essential
Breaking the taboo: Family tensions over financial matters
Many wealthy individuals avoid discussing financial plans with family, leading to misunderstandings and unrealistic inheritance expectations. Generational differences contribute to tensions. Open discussions about money and inheritance can reduce stress, set realistic expectations, and prevent future conflicts within families