Future generations
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Getting your affairs in order
Where do you want your wealth to go?
Getting your affairs in order for when you pass away can bring real peace of mind as you get older. Failing to protect family wealth from Inheritance Tax could cost families thousands of pounds but there are various strategies and solutions to legally avoid or mitigate paying this tax.
Intergenerational wealth transfer plans
Transferring of wealth from one family generation to the next
With careful planning it is possible to significantly reduce the need for your estate to pay Inheritance Tax. We spend a lifetime generating wealth and assets but not many of us ensure that it will be passed to the next generation – our children, grandchildren, nieces, nephews, and so on. Estate preservation planning is the transferring of wealth from one family generation to the next.
Inheritance Tax Residence Nil-Rate Band
Owning a residence which you leave to direct descendants
The introduction of the ‘residence nil-rate band’ (RNRB) has made it easier for some individuals to pass on the family home. The rise in property prices throughout the UK means that even those with modest assets may exceed the £325,000 ‘nil-rate band’ (NRB) for Inheritance Tax.
Lifetime transfers
Take advantage of the seven-year rule
If not exempt, an outright gift falls into one of two categories, depending the type of gift and to whom it’s made. These categories are Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs).
Power of pensions
Tax-efficient solution for passing on your wealth
Passing wealth through the family, for most, is an important part of their estate preservation planning process. Pension funds are typically free of Inheritance Tax provided the scheme trustees/administrator has discretion over the payment of death benefits.
Making a Will
Avoid legal wrangles and confusion over who will benefit from your estate
A valid Will is an incredibly important part of estate preservation planning and will ensure that, should the worst happen, your assets, whether they be financial wealth or possessions, are distributed in an orderly fashion to the right beneficiaries.
Leaving your legacy behind
Make sure your money and possessions go to the people and causes you care about
Thinking about death isn’t easy. Talking about it is even harder. The reality of our own mortality is a tough subject, but a discussion will ensure your assets are left to the right people.
Trusts
‘Ring-fencing’ assets to protect family wealth for future generations
You may want to consider putting some of your assets into a trust for a loved one. Trusts are a way of managing wealth, money, investments, land or property, for you, your family or anyone else you’d like to benefit.
UK Trust Register