How life insurances help to combat Inheritance Taxes?
We all look for ways to avoid paying inheritance taxes. One simple way to avoid paying the inheritance taxes is by taking out life insurance and then putting it in a trust. Inheritance Tax insurance is a good way of avoiding paying the taxes and also saving the tension of paying the taxes. Ways to avoid paying Inheritance Taxes Can an individual avoid inheritance taxes? Yes, they can. If a person inherits an estate or a property that crosses the inheritance tax threshold, then they become liable to pay the inheritance taxes. However, there are some ways with the help of which you can reduce the inheritance tax amount that your heirs or beneficiaries will have to pay. The ways are as follows. One can leave a part of their assets to a charitable organization. Donating ten percent will bring down the inheritance amount from 40 percent to 36 percent. One can pay in a pension instead of in a savings account. You can give a gift of £3,000 a year to your f...