ISA Inheritance tax.

JTT_2

There was an article in the Times, which explained about ISA's and that they are not exempt from Inheritance Tax. Is there any way of saving money which isn't given back to the governement when you pass on.
Cheers

dunstonh

The crude answer would be to say investment bonds as these can be used with trusts. However, they may not be needed depending on your personal circumstances and ISAs or unit trusts/OEICs may still be appropriate

Somerset

ISA's are tax free savings vehicles while you're alive. When you die they form part of your estate like every other asset. And depending on whether your estate ( assets less liabilities ) is over or under the 275K mark ( 2005/2006 ) tax will be payable at 40% on the balance over 275K.

If you don't want to have tax paid to the government when you pass on - leave an estate woth under 275K.

If you leave more. get some good inheritance tax advice, which generally costs. IH planning should be done well in advance. Also it's a very specialised field in itself.