Estate planning isn’t simply about making provisions for the future. It also ensures you have what you need while you are here to enjoy it (and to relax knowing that that the longer-term is sorted too).
The key, as with pensions and other long-term planning, is to start as early as possible. That’s not just for peace-of-mind, but also because there are ways to manage your inheritance tax that take a few years to kick-in. We can discuss your plans, help you with will writing, and ensure that all your finances are set-up to be as inheritance tax friendly as possible.
Inheritance tax can be punitive on your loved ones, but effective management can ensure that:
- As much as possible is passed-on tax free
- There are no unexpected surprises
- You retain complete control over where your money goes (be it to relatives, friends or specific causes)
- You keep enough to enjoy yourself for as long as possible
Gifting loved ones
Anyone can gift money to friends or family. While you are alive, these remain tax-free whether they are:
- One-off gifts
- Regular gifts
- Held within Trusts
There is an annual gifting allowance to bear-in-mind. But there are also tax liabilities on gifts received within a certain period of your death.
We can advise you on what to do, when to do it, and the potential risks involved. As ever, making Headway is all about matching your plans against the opportunities available.
Passing on your property
We have all heard stories of families inheriting debt and tax on properties that they can’t afford. Property is usually a wonderful asset to hold, but it can create inheritance tax issues.
We can advise you on whether:
- You can take advantage of the residence nil rate band
- If it is worth making some changes to minimise the negative impact on those inheriting your property?
Trust & Will Planning
Trusts are investments put into specific ‘pots’ with certain restrictions around when and how they can be used. They can help you create a perfect balance by minimising potential inheritance tax without giving instant access to the funds too soon. We can advise on the possibilities including putting your life insurance within a trust that allows it to be used to pay an inheritance tax bill immediately on your passing.
Discussing your Options
Estate planning can be difficult for some people. We will discuss all the options with you and do so in an objective, rational way that guides you to the right decisions for you and your loved ones. Once those choices are made, we’ll keep reviewing your position to ensure that there are no negative legislative surprises in store.
Interested in learning about how to pass on your wealth and assets in the best possible way?