Estate planning involves the preparation of a person’s assets and organising how they will be passed on to loved ones (or charitable organisation) in the event of their death or incapacitation.
How does it work?
A large part of estate planning is minimising the amount of inheritance tax (IHT) by setting up gifts, trusts and life insurance.
What happens if I don’t do any estate planning?
When it comes to UK estate planning, 40% of everything could go to HMRC for IHT if you don’t plan now!
Saving on Inheritance Tax.
When the time comes, we all want our wealth to be passed on to those we care about, whether it be our family, close friends or our favourite charity.
But have we done enough to ensure that this happens?
Will there be much left once the taxman has taken his share?
IHT planning forms part of our estate planning service and our expert inheritance tax advisors will work with you to find solutions to save on inheritance tax and leave a bigger pot of wealth for your loved ones.
Estate planning is so easy to ignore until it is too late — don’t let that happen to you!
Why Is It Important for Estate Planning to Be Done in Advance?
Leaving estate planning until the last minute could be disastrous for both you and your loved ones.
Inheritance tax (IHT) is payable on estates over £325,000 at a rate of 40%. An estate of £500,000 could pay £70,000 in tax. With simple estate planning, this could be reduced to nil!
There is a valuable “residence nil rate band” currently worth £70,000 tax saving per individual, so worth £140,000 per couple. BUT not everyone will get it. You could lose it because your will is poorly written or out of date, or if your estate is worth more than £2 million. By reviewing your estate now, literally thousands of pounds could be saved.
Your executors could be left not only dealing with the loss of their loved one but also with sorting out a complicated estate if they don’t know where your important documents are or what assets you own. Friend & Grant can help you now by recording all of this vital information in one handy document.
If you die without a will, your assets may not go where you intend them to. This will potentially leave your spouse and children without the security they were hoping for.
If you suffer a life-changing accident or illness and are left incapacitated with no power of attorney in place, who will make those important decisions about your finances?
Who will run your business if anything happens to you? Is there a second signatory on the business accounts? Are there people to step in and keep things afloat until the business can be transferred or sold?
Do you want your children to have access to your assets outright so that they are potentially up for grabs by creditors or ex-spouses if their marriage breaks down? Maybe a trust structure would suit your needs more.
Estate Planning Options
You don’t always have to give away assets to save on IHT — there are plenty of options to look at. So, if you feel as though now is the time to get prepared, begin estate planning and save on inheritance tax, contact us today to see how we can help.
If you own an established business, we’ll help you plan the next chapter of your success story. We’re experienced in financial planning, helping you to reduce tax and maximise profits to achieve your business goals.
Are you hungry for success? If you run a small to medium size business and you want to grow your sales, increase profitability and pay less tax then you have come to the right place.
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