Estate planning or Inheritance Tax planning put simply is the Tax efficient distribution of your assets upon death. It is essential to make sure that your estate passes on to your family, friends and other beneficiaries after your death in the way you have planned and in the most tax-efficient way possible.
Planning provides an opportunity to consider who you want your beneficiaries to be and when you may want them to receive financial help.
Other aspects of estate planning may include Pension planning, Financial planning and Investments.
The Rules:
Your estate is made up of everything you have, including your home, property and savings. After any debts are paid, anything over the tax-free allowance of £325,000 could be subject to 40% inheritance tax. We know that losing a loved one is devastating enough already, without the prospect of such a steep tax bill.
However, there are several ways that this can be reduced or mitigated, and our expert advisers can offer advice on the right decisions for you.
Estate Planning the right way
Solutions to inheritance tax mitigation can include trust planning, Use of reliefs, gifts and allowances permissible by HMRC. This is a complex area of financial planning which we will guide you through.
For any of these solutions to be effective they must be planned carefully and abide by HMRC rules. For example, for an outright gift to be exempt from inheritance tax it needs to be given 7 years before death. This requires careful planning to make sure you are not left short in later life by any gifts you make.
Your adviser will discuss inheritance tax planning and mitigation and advise on how this can be achieved whilst still meeting your other financial planning objectives.
Contact us to arrange a free initial consultation with one of our expert independent advisers.
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