Inheritance Tax Planning Facts

By: Carmelo Cobb | Posted: 06th April 2010

Inheritance tax is also known as estate or death duty. This is a kind of taxes which only comes up upon the event of the death of a person. Inheritance tax planning is required simply because inheritance taxes is actually the deceased person's estate tax.

There is really a distinction in inheritance tax and estate taxes as set forth by the inheritance tax laws. Inheritance taxes involve the beneficiaries of the deceased, whilst estate taxes are imposed about the representatives of those who have died. This distinction is not always put into effect and for example, in the United Kingdom, inheritance tax is imposed upon your representatives which makes it equivalent to an estate tax.

Equity release UK are also recognized as lifetime mortgage plans, homes reversions or income home plans. This is a way of a release of cash in order to go on a vacation, buy a car or make a renovation or extension for your home. What an equity release UK is, is that you are able to borrow money against the house you live in, in exchange for a home share of your house sale in the event of your death.


Equity release UK are open to people who are sixty years old and above and are a huge benefit to a lot of people. This is because houses are usually the most expensive asset you own and for this reason you can get a huge sum of money in exchange of a portion of your house being liquidated in the event of your death.

It is important that you get financial advice within the event you plan to avail of something like this. Read the fine print! This cannot be over-emphasized. Know what your choices are and what the max amount you can take out is. You need to be sure that you know exactly what the requirements are as well as knowing all the financial aspects of the proceedings before you sign your name on the blank.

An advisor will be able to explain to you what is involved as well as show you the different schemes available depending on the value of your house. You can get a regular income, a lump sum or a combination of the two.

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Tags: distinction, financial advice, sum of money, lump sum, proceedings, sixty years, beneficiaries, equity release, renovation, financial aspects, deceased person, house sale