Tax planning services like inheritance tax planning are not just about leaving money to your loved ones once you pass away; it’s also about living comfortably today. This is why getting a head start on planning is crucial. Working with our chartered accountants can help you determine how much money you’ll need, advise you on how best to transfer assets, and collaborate with you to manage or minimize an inheritance tax burden.
On estates valued more than £325,000 at the time of death, inheritance tax (IHT) is due at a rate of 40%. It may be 20% less and become due upon specific lifetime donations of assets. Nevertheless, planning options are available, such as giving assets to family and friends, making charitable contributions, or using a Family Trust that can reduce the tax owed on your inheritance. The most crucial aspect of this planning is that it is personalized for you and aids in carrying out your final desires for your estate.
Although making explicit gifts can be the simplest method to plan for IHT, you might not want to do this. This is frequently when trusts or family investment companies can be considered part of a long-term strategy to include your family and friends in your wealth without entirely giving it up during your lifetime.
In general, it’s never too early to start planning for IHT. Most people frequently think about tax planning when creating their first will or revising an existing one because the two activities go hand in hand. One benefit of starting early preparation is that once a gift is made, the “7-year clock” begins to run. If you have made an outright gift, the value of your gift completely exits your estate if you live for seven years.
Some of the inheritance tax planning services available to you include:
● Using cash flow modeling, you may make a reliable estimate of your future income and expenses to ensure that you don’t spend or donate more than you can afford.
● Utilizing all of your tax-saving opportunities, such as the gifts that are no longer considered part of your estate for IHT purposes, even if you pass away within seven years of making them, to the fullest extent possible.
● To reduce the IHT burden on your inheritance, we will work with you to determine what extra income and assets you can afford to give up.
● Investments from specialists can help you manage your IHT liability while providing growth potential to improve your legacy. Your wealth planner will collaborate closely with your investment manager to rebuild your portfolio if you currently invest through our investment management service.
We Can Help
Your committed wealth planner will take the time to understand your objectives and plans for your heirs because they may impact the inheritance tax due on your estate. They will then devise an innovative plan to assist you in achieving your goals, seeking to preserve your way of life and lawfully handle the IHT owed on your estate. They will also provide you with important advice on the best order to complete tasks to avoid jeopardizing your IHT position or hurting other aspects of your wealth planning.
Contact WAYFINDERS Consulting today to speak with our knowledgeable chartered accountants, who can thoroughly discuss our tax planning services and how they can help you with your inheritance tax planning needs.