Estate planning can ensure that your wealth is passed on to who you want it to and as tax-efficiently as possible.
Inheritance tax will be charged at 40% on everything over the normal allowances. Currently in 2020/2021 this stands at £325,000 per person, with allowances being able to be transferred between married couples. There is also an additional £175,000 family home allowance which can be passed to direct descendants such as children or grandchildren to help reduce property liability. Apart from these allowances, anything you choose to pass to your loved ones, apart from your spouse, is likely to be taxed.
Planning early and putting in place tax-efficient processes can help reduce this. You may consider ‘Gifts’, with various allowances to pass to another person other than your spouse. You may also consider leaving money within trusts but again the right procedures need to be followed to ensure this is not considered as part of the estate.
Getting the right advice ensures more of your wealth ends up where you want it to be. If this matters even a little, please make sure you speak with us today!
“I had a number of pensions & protection policies acquired over the years, and didn’t understand the investments or reasoning behind previous recommendations. Nick has helped me to tidy these up and invest in solutions that I know are in mine and my family’s best interest. I am also confident that I now have a plan that I can work towards so that I have a financially secure future.”
– Jason, Harrogate