Speaking to a financial advisor and rearranging assets can help minimise the amount of inheritance tax families will have to pay, the independent financial advisory Calculis has said.

There are uncomplicated ways of planning finances, such as placing funds into a trust, allowing consumers to still derive an income from the money, according to the company.

Calculis director Alex Pegley says: "There are various trusts that can be used - one can invest in qualifying investments that you hold personally but after two years are not susceptible to inheritance tax."

People should be aware that not everyone must pay inheritance tax after the death of their partner. It only applies if the estate is above the £312,000 nil rate band and it does not affect people who receive it from their wife, husband or civil partner if they are both domiciled in the UK.

Only in the event of the estate being worth more than this is are the assets taxable if one partner dies.

Posted on: [ May 08, 2008 ]                     

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