Tax & Estate Planning Service

Estate planning is not just about passing on money when you die – it is also about enjoying life now and ensuring you have enough to live on. It is so important to start planning early. We can discuss with you how much money you will need, help you to pass on assets in the most effective way, and work with you to reduce or manage an Inheritance Tax bill.

Many people want to keep an element of control when passing on their assets. They may want their money to be used for a particular reason, such as paying for school fees or for a first house deposit. Or they may just want to make sure their money stays within their family. We can give you advice to ensure your money ends up with the people you want, for the reasons you choose.

There are many ways to give away money. They range from one-off cash gifts to gifting a regular income, and setting up trusts for long-term giving or where future control may be important. We can talk you through the options and help you to find the most appropriate choice. We can also help you to use your annual gifting allowances and navigate the potentially complex tax rules.

The residence nil rate band is an additional allowance for passing on the family home. We can show you if your estate qualifies for the residence nil rate band and may be able to recommend changes if it does not.

Estate planning usually involves spending and giving away money, but some people hold back because they are worried about running out in later life. We can show you how much money you will need to maintain your lifestyle, while taking into account other potential expenses such as the cost of long-term care.

Estate planning can save tax. Inheritance Tax is usually charged at 40% on anything above your nil rate band – so the potential tax savings can far outweigh the cost of advice. Taking action early means more of your money going to your beneficiaries and less to the taxman. There are many ways to manage, reduce or eliminate an Inheritance Tax bill, including:

• Making gifts
• Using other assets to provide a retirement income and passing on your pension
• Taking out a life insurance policy to cover the tax bill
• Using tax-efficient investments to benefit from Business Relief

Pensions can play a big role when it comes to estate planning, as most often they aren’t included when your Inheritance Tax bill is calculated. If you can afford to leave your pension untouched while using other assets to fund your retirement, you could pass your pension on tax-free while gradually reducing the size of your taxable estate.

Trusts are a powerful tool with many different uses when it comes to estate planning. Many people choose to make gifts in trust so that the money can only be accessed at a certain time or for a particular reason. Life insurance can also be set up in a trust, so that the money can be accessed immediately to pay an Inheritance Tax bill.