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Inheritance Tax – the only voluntary tax?

I think most people know that there is no Inheritance tax payable on assets passed to their spouse, but have you thought about the Inheritance Tax that would be payable on the death of the survivor.

I think most people know that there is no Inheritance tax payable on assets passed to their spouse, but have you thought about the Inheritance Tax that would be payable on the death of the survivor.

A large majority of married couples leave everything to each other on the first death, including Pension Death Benefits.  However, if the survivor does not spend what they have inherited from their spouse, the tax man (HMRC) gets his 40% tax on the second death, when the Estate could well be considerably above £650,000.

HMRC can also get further tranches of 40% tax if the deceased Parents’ Estate is passed to Children directly and they subsequently die with the assets unspent.  Quite a nice little earner for the Government!

However, by some careful planning whilst you are both still alive, you can ensure that the Assets are passed down the family line with little or no tax to be paid.

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