Is it time to review my Estate Tax situation?
If you believe your family would have to pay an Estate Tax bill then it is worthwhile reviewing the situation as soon as possible. You may not need to action immediately but at least you would be aware of the most tax efficient methods of saving money. For example you should begin using your annual and gift allowances where possible because you can only carry forward one years annual allowance, all others would be lost.
There are various issues to consider when reviewing your overall estate and establishing how much you would currently owe and how much you could potentially reduce this to.
Simple solutions would be to either take out life insurance to cover the potential bill or give away most of your money and live for 7 years before the money is considered completely outside your estate. These options are rarely chosen because an inheritance tax strategy would be far more effective in reducing the bill with less negative consequences.
All planning strategies will have consequences of some form so it is advisable to take professional Independent Financial Advice to ensure you achieve all of your future income and capital objectives along with reducing a potential tax bill where possible.