Journal 011 – We like everybody to know about the good work we’re doing anonymously..

We like everybody to know about the good work we’re doing anonymously..

Chatting with friend and client, John, conversation got around to the ethical, moral, and tax avoidance issues inherent in leaving your money to charity when you die

It’s entirely legal to leave all your money to charity, but is it also tax-avoidance?

On the face of it, anyone can reduce their Inheritance Tax bill by giving all their assets to charity when they die, and John is giving away all his £11m. John’s estate won’t pay a penny of the £4m otherwise due in Inheritance Tax, and that’s logical. It can’t pay, because John’s given everything to charity

Effectively John, and all wealthy people, can decide whether they want to pay Inheritance Tax, or give their money to charity. (Actually, there are 3 legal options, we’ll get to that)

Surely, giving to charity is a good thing, right?

If you decide to give your money to charity, you get to choose the good cause(s) you want to support.  Who knows, you may even get a hospital wing named after you

Decide to give your money to HMRC, and the outcome’s different. The Government gets to decide how your money’s spent, and everyone has differing opinions on the efficacy of that model

It is a choice. You don’t have to do either. Your children might prefer the third legal option

That is, plan during your lifetime, exactly what you want to happen when you die, to the wealth you created during your lifetime. Not one of us ever voted to have our wealth distributed!

Done properly, and in advance, your children won’t lose a penny in Inheritance Tax

 

So, children, charity or chance, those are your legal choices

Let us review your Inheritance Tax planning with you. Experience the Power of a FREE Hour here

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