While putting together my latest book regarding inheritance tax and how to avoid it – The Inheritance Tax Eliminator – I got thinking about other ways to pass on your wealth without it being double or triple taxed.
What really annoys me about inheritance tax is the fact governments want to tax money that has already been taxed… often more than once.
There’s not many ways to accumulate wealth without paying tax on it and so when the government – the same government that insists on good family values and wants people and families to be self reliant – insists that they take a large chunk of the money that you pass on to your family when you die… money which has already had tax paid on it… it really annoys me!
You’ve already paid tax on that money, why should your children or benefactors have to pay tax to be given it?
Isn’t that what good family values are all about… helping your family financially and passing on the wealth you have accumulated over the years?
I remember watching a drama a couple of years ago where an architect had suddenly died and the house he had just had built was left to his parents – much to his wife’s surprise – and because of the value of the house his parents were left with a hefty five or six figure tax bill that they couldn’t afford to pay.
Their only option was to sell the house to pay the bill that they suddenly found themselves with.
Failure to pay would have resulted in more financial penalties.
As well as struggling with the grief of losing their son, they were now facing the stress of having to quickly sell a house so that they could pay a large tax bill they didn’t ask for.
Inheritance tax is not only a disgraceful attempt to steal more money from ordinary hard working people who are already paying taxes, it is also an additional stress that is dumped upon people at a time they really don’t need it.
Talk about breaking people’s sprits!
It’s vile.
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And so while putting together the book The Inheritance Tax Eliminator, I got thinking about other ways to pass on your wealth without passing on any other tax burdens.
What came to mind was – while you are still young – to either gift a lump sum of money each month to specific people, similar to paying them a wage… or to set up a fully automated passive income system to pay them an additional wage.
Yes, they (or you) will need to pay some tax such as income tax each year, but at least it is a tax that is being paid once.
Don’t forget whatever money or assets your family are set to inherit from you in the future, income tax and other taxes have already been paid on it.
For example: let’s imagine that you created a website which sold numerous information products, similar to our Streetwise website.
The money made from sales either goes directly to your benefactor, or into a bank account that you have set up specifically to send money to the benefactor each month.
Yes, you (or the benefactor) will need to pay tax on any ‘additional’ income earned, but at least it isn’t going into your bank where it will be eroded by taxes each year and then being heavily eroded again once it is passed on to your chosen benefactor many years later when you have died.
Obviously, if you are in a position where you need the extra money yourself, setting up a passive income for others as a gift to avoid inheritance tax is probably not your priority, and with living costs as they are today, I can understand that.
A passive income would then be a gift you should consider giving yourself.
I cannot say how much you can earn as there are so many different factors to consider for each person, but after all my years in the information publishing business; I have seen more examples than I can remember of people earning large amounts of money by creating and publishing books and courses from home.
I am not saying that you create an eBook, publish it online and then sit back and watch as the cash rolls in each month… there is a little more to it than that.
However… once you have set up a fully automated passive income system correctly, they can require little maintenance.
Andi, our techy guy, previously worked as a joiner and he has told us about the people who he had worked with who were missing body parts due to working in the building industry.
I remember there were two guys who were missing several fingers, and one who lost an eye thanks to an incident with a band saw and a lump of wood.
Andi himself had to take time off work due to a couple of injuries that occurred while working on building sites.
One accident left him on crutches after twisting his foot while stepping out of a doorway on to uneven ground resulting in a painful hairline fracture to a bone in his foot.
One workshop he used to work in had a cleaner who was originally a welder in the RAF but a serious accident left him with a permanent brain injury meaning that sweeping up was the only thing he was able to do.
Working online is far easier and safer than many other forms of work… and it can be far more profitable.
So yes, there is more to it than simply creating (have created) and publishing a product online… but no, the work is not hard, nor is it difficult.
Imagine creating a passive income that was to pay between £500 and £1,000 per month for either you or a family member for the next ten or twenty years.
That would be good, wouldn’t it?
If you were to set that up for someone as a way to pass on your wealth in the here and now to avoid any potential inheritance tax in the future, I’m sure they would thank you for it.
Plus, most people need financial help in the here and now. It makes life easier and less stressful when there is more than enough money coming in.
As nice as it is to inherit a large lump sum later in life, I believe most people would find it more useful and enjoyable to have the financial help and support now.
I’m not suggesting that you should if you don’t want to… but gifting your money now to your family today, or setting something up that ‘gifts’ money on your behalf, is far better than allowing them to struggle for several decades and to then be left with a potential tax burden to deal with alongside grieving the loss of a loved one.
It’s just an idea.
And if you like the idea of creating a fully automated passive income system for you or a love one, go to:
The 30 Day To £30K Challenge
Kind regards.
John Harrison.
PS… We are currently putting the final touches to a new product that I believe will sell really well and generate at least £30,000 in profit over time.
It may be more, it may be a little less, but I’m sure it will do well… and it has taken the author less than a week to put together.
Just one week’s work could easily make £30,000 or more. I’m sure you or a close family member would find that useful.
Once a product is created, it can be sold for many years to come. We still sell copies of products that were first promoted over ten years ago.
Here’s that link again: