How to write a will to avoid paying thousands in inheritance tax | Personal Finance | Finance

“So one person can have up to £500,000 of allowances (£325,000 plus £175,000), or for a couple it can be £1million of IHT allowances which can significantly reduce the IHT burden, but only if there is a will written.”

The financial planning expert also spoke about trusts as another way to slash a person’s IHT liability.

He said: “The other option to avoid IHT by writing a will is to put the assets into a trust structure, so they are not included in the estate when calculating IHT on death.

“Again, this is not possible if there is no will written. Finally, if you leave money to charity in your will, that money is exempt from IHT. In addition, if you leave more than 10 percent of your net estate to charity, you can reduce the IHT rate from 40 percent to 36 percent.

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