Giving gifts during your lifetime is one of the most effective ways to reduce the value of your taxable estate. Many tax systems offer annual or lifetime gift allowances that let you transfer money or assets to family members without triggering tax charges. These gifts can gradually lower the size of your estate, which may reduce or eliminate inheritance tax liabilities.

However, it’s important to understand the rules surrounding gift taxes. Some regions consider gifts made within a certain number of years before death as part of the estate for tax purposes. Proper timing and documentation are essential to ensure the gifts are treated correctly.

Gifting can also help heirs financially earlier in their lives, allowing them to pursue education, buy homes, or start businesses. When structured carefully, gifting becomes a powerful tool in inheritance tax planning, benefiting both the giver and the recipient.

Inheritance tax advice