Inheritance Tax can cost families thousands of pounds but there are various ways to legally avoid paying this tax. Without making suitable plans, your loved ones could face an Inheritance Tax bill of 40% on the value of everything you own above a certain threshold.
Whether you have earned your wealth, inherited it or made shrewd investments, you will want to ensure that as little of it as possible ends up in the hands of the government and that it can be enjoyed by you, your family and your intended beneficiaries.
If you pass away and do not have provision in place to preserve and protect your assets, then your family may end up spending a substantial amount of time and money battling over your wealth.
It might be appropriate to leave some of your estate in trust. The type of trust to use – and even whether a trust is appropriate – will depend on your circumstances. Trusts may be used to ensure family assets are protected in the event of divorce or bankruptcy.
A trust may also be useful to ensure younger beneficiaries do not receive money or assets whilst they are too young to manage them. There may also be Inheritance Tax benefits from leaving assets in trust.
Whatever your reason for considering a trust in your Will, you should seek professional financial advice to ensure it is correctly established.
Growing your wealth
Goals based investing
- Cash flow modelling
- Creating a financial roadmap
- Investment objectives
- Timescales and market activity and the impact of losses
- ‘What if’ scenarios
- Discussing legacy planning with your loved ones
- Inheritance Tax (IHT)
- Inheritance Tax Residence Nil Rate Band (RNRB)
- Lasting power of attorney
- Lifetime transfers
- Making a Will
- Preserving wealth for future generations
- Protecting your assets for the next generation
- Slicing up your wealth pie
- Children’s pensions
- Defined benefit (or final salary) pensions
- Defined contribution pensions
- Personal pensions
- Self-Invested Personal Pensions (SIPPs)
- The state pension
- Annual allowance and lifetime allowance limits
- Busting myths about pensions
- Increases to pension age and new normal minimum pension age
- Pension freedoms
- Pension withdrawal methods
- The lifetime allowance
- Delaying retirement
- Generating income from investments throughout your retirement years
- Importance of a retirement wealth check
- Retirement goal setting
- Retirement planning
- Reviewing your retirement plan
- Staggered retirement
- Taking control of your retirement plans
- What can I do with my pension?
- What happens to my pension on death?
- Discretionary Fund Managers
- Market timing
- Minimising risk
- Multiple asset classes
- Portfolio insulation
- Pound cost averaging
- Principles of investing