Estate Planning & Wealth Preservation
Estate Planning & Wealth Preservation
When managing their wealth, individuals and families usually have two main objectives – to have sufficient funds to support their lifestyle, and to ensure that their estate is distributed according to their wishes thereafter.
If you are planning on leaving assets to your family or others on death or wish to gift assets during your life-time, there is a real risk that the value of these assets will be significantly reduced by inheritance tax (IHT).
Inheritance rates have seen many changes over the years, and as governments continue to introduce new rates, tax free thresholds, and tax reliefs, it has become more important than ever to plan ahead. We aim to advise our clients how best to utilise available reliefs and to devise durable structures to benefit you, your family and the next generation.
Tax considerations
If there is Inheritance Tax (IHT) to pay, it’s charged at 40%
There’s no Inheritance Tax to pay if either:
1. The value of your estate is below the Nil-rate Band threshold
2. you leave everything above the Nil-rate Band threshold to your spouse, civil partner, a charity or a community amateur sports club
If you give away your home to your children or grandchildren your threshold can increase.
Upon death any unused threshold can be added to your partner’s threshold. Meaning that their threshold can be much higher
Gifts made three to seven years before your death are taxed on a sliding scale known as ‘taper relief’. After 7 years they are IHT exempt.
Key Investments Consideration
Wills
The Loan Trust
Life insurance to cover IHT liability
The Discounted Gift Trust (DGT)
Lifestyle Trust
Family Trusts
Tax efficient gifting Strategies
Insurance (towards Capital Acquisition Tax)
Structures for Incapacitated Individuals
Power of Attorney
IHT Tax Relief
- Business Property Relief
- Agricultural Relieff
- Woodland property Relief
- Heritage Relief
