If you're above the inheritance tax threshold (we've outlined the thresholds and allowances here), it's important to take steps to minimise your tax liability. The rate of inheritance tax is 40%.
Below are some key options you can use:
1. Get a trust-based Will
A Trust-based Will sets up an arrangement that can provide significant tax advantage.
A key aspect of the Trust-based Will is that it provides added control and flexibility to navigate the tax system effectively and capitalise on tax exceptions. This enables trustees to handle the estate based on the specifics of the inheritance tax regime at the time of death as well as the individual circumstances.
You can set your Will up in 20 minutes here.
2. Make investments that come with tax advantages
Investing in startups is an opportunity that was only available to people with the right contacts previously. We're now bringing those opportunities to the Muslim community at IFG.VC.
You can read more about this SEIS and EIS investing and the tax-efficiencies of it here.
3. Use the IFG Logic Aim portfolio for further mitigation
Logic Investments have set up the UK's only sharia-compliant investment portfolio of carefully selected AIM stocks that qualify for Inheritance Tax exemption.
You can sign up here.
4. Estate planning
If your estate is more complex and is in excess of £1m, we can introduce you to a specialist tax advisor for a more bespoke tax strategy.
You can book a free initial call with them here.
This article is part of our Islamic Wills FAQ series.