If you would like to pass your wealth on to the next generation without a significant proportion of it going to tax, estate planning is essential. From deciding who should inherit your wealth to maximising the value of your estate by reducing or eliminating taxes, estate planning will give you peace of mind.
We know that planning for your death is an uncomfortable and an emotive subject, however, the earlier you begin this process, the better. With careful estate planning, we can help you leave your money to those you love tax-efficiently and eliminate uncertainty over the administration of your assets.
There are a variety of options for reducing the Inheritance Tax liability on your estate, including the following:
Having a current Will is a fundamental element of your estate planning. A well-drafted Will ensures your assets pass to the people you want to benefit, and can create tax efficient strategies itself.
Making financial gifts to family and friends can reduce your inheritance tax. You can gift several types of assets, including cash, savings and property. Unfortunately, gifting is not always straightforward as it is subject to complex rules and allowances set by HMRC.
Pensions are usually exempt from inheritance tax and can be passed on after death. Using less of your pension and spending other assets on retirement living means you reduce the value of your taxable estate.
Investing in assets eligible for Business Relief can reduce inheritance tax. Business Relief reduces the taxable value of a business or its assets when working out how much Inheritance Tax is due.
Trusts can protect your assets and maximise tax efficiency while allowing you to control their management and your chosen beneficiaries. In addition, putting a life insurance policy into trust means the money can be accessed tax-free immediately upon your death. This arrangement can help your beneficiaries pay any inheritance tax that becomes due on your estate.
Inheritance tax-reducing strategies are complex and not suitable for every estate. Therefore, we highly recommend seeking expert advice from a financial planner to assist with your estate planning.
Whatever your stage of life, we can help you structure your estate in readiness for the future. Please get in touch for an informal chat with one of our financial advisers.
There are various effective strategies to minimise the inheritance tax burden on your beneficiaries when you die. This is a complex area of financial planning but with our expertise, we can determine which strategies are most appropriate for you and your estate and manage their implementation. Your succession plan will ensure you can enjoy life now, safe in the knowledge that you will pass on your assets in the most tax-efficient way.
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
