When the time comes we all want our wealth to pass on to those we care about, whether it be our family, close friends or favourite charity. But have we done enough to ensure this happens and will there be much left once the tax man has taken his share?
This area is so easy to ignore until it is too late – don’t let that happen to you!
So why is it so important to plan now? Here are just some of the reasons:
- Inheritance tax (IHT) is payable on estates over £325,000 at a rate of 40%. An estate of £500,000 could pay tax of £70,000. With simple planning this could be reduced to nil!
- There is a valuable ‘residence nil rate band’ currently worth £50,000 tax saving per individual, so worth £100,000 per couple, BUT not everyone will get it. In fact you could lose it because your will is poorly written or out of date, or if your estate is worth more than £2 million.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 could be saved.
- Your executors could be left not only dealing with the loss of their loved one but with sorting out a mess if they do not know where your important documents are kept or even what assets you actually own. Let us help you now by recording all this vital information in one handy document.
- If you die without a will your assets may not go where you intend them to, potentially leaving 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.
If any of this sets off alarm bells why not contact us about how we can help you.
And finally be aware that you don’t always have to give away assets in order to save Inheritance Tax, but if you can afford to do so the sooner you act the better, so don’t put it off any longer….call us today!