This option might appear frivolous at first glance, and for many people, a natural sense of prudence discourages it.
However, spending immediately removes cash from your estate, so increasing your expenditure can be an effective way to reduce your IHT liability.
Before embarking on a spending spree, we suggest reviewing your financial situation to ascertain if you can afford to spend more, without putting at risk your ability to cover your expenditure for the rest of your life. One of the services we offer is cash flow forecasting, which considers your current assets and liabilities, income and expenditure, and future plans and objectives, and projects how your finances may evolve over the rest of your life.
This can help you to understand the strength of your financial position and whether assets might be surplus to your requirements, and therefore if there is scope to sustainably increase your expenditure, or undertake some of the other steps to mitigate your IHT liability we cover.