7 Legal Ways To Avoid Inheritance Tax

Inheritance Tax

Attention: Be warned! You may be liable for Inheritance Tax.

Inheritance Tax is 40% of your estate after death and can eat up a lot of money for you and your family. It’s important to know how to avoid it so that you don’t leave them with less than you would like.

The Queen of England Inheritance

The Queen of England amassed over $500 million in personal assets, and it’s all thanks to her savvy business strategy and investments in a diverse range of assets.Her Majesty also inherited nearly $70 million from the Queen Mother when she died in 2002, including investments in:


Stamp collection

Fine china



Faberge egg collection

The Queen’s personal assets will now be passed down to Charles III, once he officially takes the throne. Due to a special legal clause (that aims to avoid erosion of the royal family’s wealth), he won’t pay the 40% inheritance tax.

How To Avoid Inheritance Tax?

In this article I am going to show you 7 legal ways to avoid inheritance tax.

There is no inheritance tax paid on assets inherited between spouses. You might want to will your estate to a trusted spouse when you die. In that way she can be instructed to give specific handouts and donations to whomever you wish.

2. Give your assets away.

If you give assets away and you survive for at least 7 years then all gifts are free and avoid inheritance tax. If you die within 7 years then inheritance tax will be paid on a reducing scale.

3. Put assets into a trust.

If you place assets within a trust they will not form part of your estate on death and avoid inheritance tax.

4. Take out life insurance.

You can cover any potential liability for IHT by taking out a life insurance policy for the potential inheritance tax bill and placing the policy in a trust to ensure it is paid outside of your estate.

5. Leave something to charity.

Anything left to a charity will be free of any IHT liability. If you leave at least 10% of your total assets to charity then the inheritance tax rate on the remaining assets will be reduced from 40% to 36%.

6. Spend it! .

There is little point in living on a tight budget as you grow older and then your beneficiaries get taxed at 40% on some of your assets. If you have worked hard to build up your assets then you should enjoy them to their utmost.

7. And finally…

If all of your wealth is tied up in property, you could consider an equity release scheme such as a lifetime mortgage or home revision scheme.Depending on which option you choose, you will either borrow money against the value of your home or sell part of your home at a reduced market rate while continuing to live in the property. The process works by reducing the assets you own and in turn increases the debts that count against your estate. The money you receive can be passed onto your future beneficiaries.


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Jade Of Wallstreet

Blockchain writer(legal,technical & creative) | Blockchain Advocate For young people in Africa 🌍 | Experienced Defi Farmer, Research/Insight Analyst.