When gifting assets, it’s sometimes beneficial to ‘skip’ a generation to avoid some tax traps for the unwary. Tristan Noyes explores some scenarios.
As the UK’s ‘most hated tax’, many people are focussed on avoiding inheritance tax (IHT). IHT is often viewed as voluntary because it is easy to avoid – simply give your assets away and try not to die for seven years!
A typical starting position is to give money to your children; but it’s worth considering skipping a generation and gifting to grandchildren (or even great-grandchildren).
