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Common Inheritance Tax Myths Wealthy Families
Should Avoid
Author: Ray L Best
1 October 2025
Inheritance Tax is surrounded by myths that can cost families millions. Let's clear up the most common misconceptions.
Myth 1: "I can just give it all away."
Gifts only become fully exempt if you survive 7 years.
Large gifts made too late may do little to reduce liability.
Myth 2: "My estate isn't complicated enough for planning."
Estates worth £2M+ automatically face complexity.
The residence nil-rate band tapers away, leaving exposure.
Myth 3: "Trusts are only for the ultra-wealthy."
Trusts are practical tools for anyone with assets above £2M, not just billionaires.
Myth 4: "The law won't change."
Inheritance tax rules shift regularly.
Planning needs review to stay effective.
Don't rely on hearsay.
Tailored professional advice avoids costly mistakes.
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