Inheritance Planning

It might not be nice to think about, but having a plan in place for what happens to your money and other assets when you die can have a huge impact. The earlier you have these conversations and put plans in place, the longer you have to make better use of tax allowances, so more of your wealth can be enjoyed by your loved ones. There are some financial implications to consider when passing on wealth as well as your own personal wishes for your money, and we can help you create a plan that considers both.

If your estate is liable for IHT, it is usually payable at 40%. The current IHT threshold is £325,000 for an individual and £650,000 for a married couple. There is also a residence nil-rate band, where your main residence is passed to a direct descendant, which is currently £175,000.

For estates where IHT was payable, the average IHT bill was £215,000 in 2021/22, so it could be well worth putting a plan in place with a financial adviser. We’ll help you organise your assets in a tax-efficient way, so those set to inherit your estate aren’t left with a surprise. Inheritance planning can be very complicated, so having an expert on board can pay off.

Tax rules can change and the impact of taxation and any tax relief depends on your circumstances, including where you live.

You can gift money when you’re still alive to people or causes you care about. Gifting has the added benefit of letting you see first-hand the impact your money is making and can help to reduce Inheritance Tax. Our advisers can help weave gifting into your inheritance plan. And it’s a conversation worth having sooner rather than later, as the longer you live after making a gift, the less tax your loved ones will have to pay. For example if you live for seven years after making a gift it usually wouldn’t be taxed at all.

Trusts allow you to pass money and other assets to your loved ones. It’s a legal arrangement where a trustee takes ownership of whatever is placed in trust, and it’s their job to manage things responsibly for whoever you intend to receive it. Before the trustee takes legal ownership, you can set some rules.  For example, you may only want a child to be able to access it once they reach a certain age. There are different types of trusts, and each has its own implications for your assets. It’s important that you can afford to make the gifts you put in trust because they can’t be used for your own benefit in the future. There’s a lot to consider and we can help you make a choice that works for your financial future and that of your loved ones.