Tax & Estate Planning

It has been said that there are only two certainties in life, Death & Taxes. Whilst we cannot save you from the former, our fully qualified investment advisers may be able to assist with the latter. We know more than virtually anyone how much elderly clients wish to ensure that as little of their estate as possible goes in Inheritance Tax (IHT). Most people feel that they have ‘done their bit’ whilst alive, and want their loved ones to benefit from anything they leave behind.

The simplest method of avoiding IHT is to give your money away and live for 7 years, but this is not always practical. It may well be that you need the money or assets in order to fund your retirement. You cannot, for example, give away your home and continue to live in it (the gift will be deemed as having been made on the date of death). You cannot give away a let property and continue to receive the rent. Equally, you cannot place your investments in another persons’ name & continue to live from the income.

Fortunately there are a number of options that may be of value. Certain investments remove IHT liability after only TWO YEARS. Other investments allow a return of capital to be taken as a regular income with investment growth falling ‘outside the estate’ for IHT purposes. These reduce liability over a 20 year period but still allow income to be taken for living expenses. There are many trust arrangements that can help in this respect.

The most important issue is invariably an appropriate and valid will. This, and Power of Attorney provision, is something that we can recommend through an associate firm.

If you are at all concerned about estate planning & IHT liability please call, email, or click the ‘contact’ button. Make sure you leave your life savings where YOU want them to go.