According to a recent survey an increasing number of Britons are getting around inheritance tax by handing assets to loved ones before they die. So says the Daily Mail today. According to the report the phenomenon is more prevalent among the wealthy who know they will be most likely financially capable of leaving an inheritance . Cash is the favourite gift because it is exempt from capital gains tax. There is of course the time factor whereby it is not entirely free of inheritance tax until the expiration of seven years after the gift.
This does not alleviate the necessity of writing a Will. Properly drawn Wills are an essential part of financial planning as are Lifetime Property Protection Trusts , Asset Protection Trusts and Powers of Attorney. Parents and Grandparents who want to ensure their loved ones benefit in the future from the assets accumulated over their lifetimes should utilise all of these means to pass them on.