Understandably, you want to pass as much of your wealth on to your children, grandchildren or other beneficiaries as possible when you pass away. After all, you’ll have worked hard throughout your life building your wealth. You’d obviously rather it goes to your family rather than the taxman.
There are ways to help that happen, but it’s important to plan ahead.
In 2020/21, more than £5.3 billion was paid in Inheritance Tax (IHT) to HMRC (Source: HMRC). With house prices continuing to increase, and after a long period of investment growth, it’s likely that this figure will go up in future years. More and more people will likely find the value of their assets eaten away by tax.
Another contributory factor is the announcement by the chancellor in his 2021 Budget statement that the IHT threshold is to be frozen at £325,000 until at least 2026. This is estimated to impact 11,000 estates each year.
If you’re looking for practical suggestions to protect your family’s future, and ensure they don’t pay more IHT than they need to when you pass on, then this guide is for you.
Here are eight steps you will likely want to consider to make sure your estate is set up as tax-efficiently as possible.
We would strongly recommend that you seek guidance from one of our experienced estate planners. Remember, all the steps we’ve listed here are generic, whereas we’ll consider your financial position in detail and create a bespoke plan to suit your circumstances.
HOW WE CAN HELP
Helping families protect their wealth and create certainty for their family and future generations is what we are truly passionate about.
We can help you achieve the peace of mind that comes with correctly organising your inheritance affairs, while also helping you to protect your hard-earned wealth for the next generation.
To find out more about our services or talk through your own situation, please get in touch.
