Many people dream of winning the lottery and becoming overnight millionaires, giving up work, buying a big house and flashy new cars, boats, holidays….the list goes on. But have you ever thought how much the Government might claw back in tax if the lottery winner were to die within a few years of such a win?
The current threshhold for Inheritance Tax is static at £325,000 which means anything over this amount in the estate at the date of death will be subject to tax at 40% unless it is left to a surviving spouse or civil partner or to charity. On a win of £45,000,000 as has recently been won in the Euromillions, the tax payable could be an eye-watering sum. A nice problem to have, you might think but one that we definitely recommend is considered along with the spending spree!
We can advise on ways to leave funds in trust in a tax efficient way and introduce you to trusted local Independent Financial Advisers and together we can help you minimise your exposure to tax whether you have millions in the Bank or much more modest sums!