How to avoid burdening your heirs with inheritance tax

Inheritance tax: How to avoid burdening your heirs with inheritance tax - at Moneyweek.co.uk - the best of the week's international financial media.

Gordon Brown has been making it much harder to avoid inheritance tax (IHT), particularly for those who own property that has risen in value, says Tax Tips & Advice. If the value of your house is over the IHT threshold of £263,000, your heirs will be liable to pay 40% on the difference.

You can get around this by giving away the property before you die (although schemes that allow you to remain living there are under scrutiny) and, as long as you survive for seven years after the gift, no tax is payable on your death. But timing is vital, especially if you still need income.

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