DWI CPD Test: Effective Inheritance Tax Planning

1. What is the main purpose of inheritance tax planning?

To increase tax payments

To help reduce the tax burden

To avoid writing a will

To increase property value

2. At what point is inheritance tax typically applied?

When assets are sold

When a will is written

After a person's death

During retirement

3. What happens if inheritance tax is not planned properly?

More of the estate may go to the government

The tax disappears

The heirs receive a bonus

The property gains more value

4. Why is professional advice recommended for inheritance tax planning?

To make the process more complicated

To find legal ways to reduce tax

To delay inheritance

To increase tax payments

5. Who is responsible for paying inheritance tax?

The government

The person receiving the inheritance

The bank

The local council