Estate Planning

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Someone’s is sitting in the shade today because someone planted a tree a long time ago ..

Do you need to plan for a potential Inheritance Tax on death?

If the value of your estate is in excess of £325,000 (Nil Rate Band or NRB) until the tax year 2018/19 then potentially yes. There is now a Residential Nil Rate Band (RNRB) too, where, initially, the RNRB was set at £100,000 but increases by £25,000 each year until it reaches £175,000 in April 2020. Just like the standard Nil Rate Band, any unused RNRB on the first death of a married couple or civil partners has the potential to be transferable even if the first death occurred before 6 April 2017.

However, the RNRB does come with conditions attached and so may not be available – or available in full – to everyone.

Can I make gifts in life which will be exempt from IHT?

Yes some gifts made in life, will be entirely exempt from IHT, but, not all. If you live for seven years after making the gift, it may be exempt from IHT on death or second death.

How much tax will my Estate have to pay when I die?

On death, IHT is payable from a person’s estate, typically after probate has been granted, however, if trusts are used probate can, in some cases, be avoided.

IHT is payable at 40% over and above the NRB and RNRB. Gifts made in life are subject to different rules.

Things to consider when planning to give a financial legacy

• Is the value of your estate going to be subject to IHT?
• Do you want control over how your assets are distributed to loved ones and beneficiaries, even from the grave?
• Would you like to protect assets against creditors and bankruptcy?
• Are you really happy for your estate to be subject to IHT many times over? This is called generational IHT and can be managed in a simple way by using trusts.
• Are you concerned if your spouse remarries after your death and what might happen to the estate you built up in life together? i.e. Could your intended beneficiaries be deprived of their inheritance?
• What happens if you pass on assets to your children and they get divorced. Half of the estate you worked so hard to provide your children with could be taken.
• Do you own a business?
• How much tax do you need to pay? If you don’t take advice you won’t know!

Are you a business owner?

If yes, your business could qualify for BPR or Business Property Relief, i.e. your business could be passed on with no IHT being paid. Assets owned personally but used by a partnership attracts a different rate of relief at 50%

If you own a business you will likely need a business clause in your Will to direct assets in line with your wishes accordingly.

The basics of managing an IHT liability

• Gifting in life is one of the tools used to manage a first generation IHT liability but you must start planning early.
• Use of Trusts. Trusts have many uses, but, they can will likely add complexity. If using trusts it is important that your beneficiaries are clued in to the planning you have set-up. It is also advisable to use professional trustees and a professional executor.
• Life assurance policies. These can be used to cover an potential IHT bill. Life policies should be assigned to trust, but, again rules are complex here and it is advisable to use a professional trustee.

Next steps ..

You’ve paid the tax man all your life and you will probably have to pay him again when you die, so, why not ensure that you are not over paying tax that you needn’t.

Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation.

Get in touch to discuss your personal and business tax requirements.

Not sure what to ask? Call today on 01628 308138

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Trusts are used to protect assets but they have many uses. They are widely used by middle class people and have been used since the 11th century.

The Financial Conduct Authority does not regulate will writing services, advice on trusts , or powers of attorney.

What is Trust Planning?

A common misconception I come across is that trust planning (including wills) and securing a financial legacy for future generations is exclusively for the uber-wealthy. This is absolutely not the case in reality.

Yes, it’s true that wealthy families have for many centuries been using trust planning to secure, protect and grow family assets in an efficient manner, but this type of planning is no longer just for nobility.

In the last two generations since the end of the Second World War we have seen rapid growth in middle class wealth, fueled primarily by property and equity markets. This means that middle class families now need to protect wealth from over-taxation, creditors, divorce, care home fees, IHT, etc. in the same way that high net worth families have been doing since the 11th century.

If you wish to protect your estate during life and on death and pass on your assets in an efficient, whatever the size of your estate, then get in touch to find out more.

Planning for the future optimizes your estate, provides you with control over your affairs and assets, whilst protecting your estate in a worst case event, when you and your family need it the most.

Want further information?

Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I will work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation.

Get in touch to discuss your estate planning requirements.

Not sure what to ask? Call today on 01628 308138

Financial Planning for People & Businesses Across the Thames Valley

Contact Us

Ask a question or make a no obligation enquiry by email

Finance FAQs

A list of clear answers to questions frequently asked by my clients

Finance Jargon

A simple guide to help clarify the confusing terms and financial jargon

• Home
• About Me
• About You Getting Off to a Good Start
• Increasing Responsibilities
• Growing Your Wealth
• Planning a Safe & Secure Retirement
• Enjoying Your Retirement

• Savings and Investments
• Mortgages
• Insurance
• Business Planning
• Pensions and Retirement Planning
• Estate Planning

A legal document which ensures that on death of the settlor, the estate is distributed to the right people and that assets and funds don’t go to the wrong people.

The Financial Conduct Authority does not regulate will writing services, advice on trusts , or powers of attorney.

Will writing is not part of the Quilter Financial Planning offering and is offered in our own right.

Do you really need a Will?

Did you know that two thirds of parents who have children haven’t gotten around to writing a will ?

If you die without a valid will, your money, property and possessions will be shared out according to the law of intestacy, instead of your wishes.

This can mean they pass to someone you hadn’t intended – or that someone you want to pass things on to ends up with nothing.

It also means that if you have children under the age of 18 your children may have to go into care until the courts have determined who is ‘deemed fit’ to look after them.

Can I do it myself or get an off-the-shelf Will?

Do-it-yourself wills are becoming ever-more popular but the risk is high. However, for those with relatively straightforward affairs this can look like a cheap option.

You must take care about how this document is drawn up as simple mistakes could prove costly in the long run, as your will could be challenged or disregarded altogether.

A badly-made will could also land your relatives with legal fees running into thousands of pounds – dwarfing the fees charged to draw up a will correctly.

We can help you get it right for those you love

‘A will with advice’ should only cost about £500 to draw-up but could ultimately save your loved ones a great deal of money and unnecessary problems.

Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I will work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation.

Get in touch about Wills, Trusts and Lasting Powers of Attorney.

Not sure what to ask? Call today on 01628 308138

Financial Planning for People & Businesses Across the Thames Valley

Contact Us

Ask a question or make a no obligation enquiry by email

Finance FAQs

A list of clear answers to questions frequently asked by my clients

Finance Jargon

A simple guide to help clarify the confusing terms and financial jargon

• Home
• About Me
• About You Getting Off to a Good Start
• Increasing Responsibilities
• Growing Your Wealth
• Planning a Safe & Secure Retirement
• Enjoying Your Retirement

• Savings and Investments
• Mortgages
• Insurance
• Business Planning
• Pensions and Retirement Planning
• Estate Planning

A legal document that ensures that if someone loses mental capacity their affairs, health and welfare and property and finance, are looked after by their nominated attorney.

Advice on Lasting Power of Attorney is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accepts no responsibility for this aspect of our business.

What is a Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney is effectively a living Will and can be used in both personally and for businesses.

If you lose mental capacity but you are still alive your assets may be frozen. Whilst a deputyship is being granted by the courts which can take up to a year, your loves ones may not then be able to live from day-to-day with the funds available to them, especially if you have dependents.

Essentially, if you do not have a lasting power of attorney you may be putting yourself and your family at risk.

If you run a business, you should also consider drawing up a business lasting power of attorney, as your personal attorney may not be the right person to manage your business affairs in a worst case event.

For more information on why everyone should have a Lasting Power of Attorney, watch this video.

For more information on why you should draw up a Lasting Power of Attorney today, watch Heather Bateman’s story by clicking the link below:

This link will take you to the website of the BBC. We are not responsible for the content of external sites.

Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I will work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation.

Get in touch to discuss your LPA requirements.

Not sure what to ask? Call today on 01628 308138

Financial Planning for People & Businesses Across the Thames Valley

Contact Us

Ask a question or make a no obligation enquiry by email

Finance FAQs

A list of clear answers to questions frequently asked by my clients

Finance Jargon

A simple guide to help clarify the confusing terms and financial jargon