15th September 2023
Preserving wealth for future generations
ESTATE PLANNING EARLY AND IMPLEMENTING IT IN STAGES IS DESIRABLE
The UK Treasury has been receiving record breaking inheritance tax (IHT) receipts. IHT receipts amounted to approximately £7.09 billion British pounds in 2022/2023, compared with £6.05 billion in the previous financial year .
For individuals and families who pay it, IHT can be emotionally challenging, often requiring the sale of cherished family assets to settle the tax bill. That’s why starting estate planning early and implanting it in stages is essential. Also, having an open conversation about estate planning with family members is very beneficial but depends on family dynamics and wealth levels.
MINIMISE TAX LIABILITIES
However, families should take proactive measures to minimise the possibility of facing a substantial IHT bill. By planning ahead and seeking professional advice, individuals can ensure their assets and managed to minimise tax liabilities.
Creating a comprehensive wealth strategy involves considering various factors.
HERE ARE SOME KEY POINTS TO KEEP IN MIND
Gifting can be a valuable tool in wealth planning, allowing you to reduce a potential IHT tax burden. We can guide you on the various gifting allowances and exemptions available, such as the annual gifting allowance, wedding gifts and gifts from normal expenditure out of income.
Most trusts offer flexibility and control over how your assets are distributed. They can also help reduce taxes on inheritance. This excludes Absolute Trusts, where control over assets is discretionary. Working closely with us, you can explore different trust options and understand how they can be incorporated into your wealth strategy.
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The tax treatment is dependent on individual circumstances and may be subject to change in future.
Estate planning is not regulated by the financial conduct authority.
A pension is a long-term investment.
The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future investment rates and tax legislation.