Estate Planning

Inheritance Tax used to be a tax upon the very wealthy however more and more households are now falling into subject to the 40% tax that can be imposed on an estate.  Despite millions being paid to the Treasury every year through Inheritance Tax there are a number of ways of reducing your liability while you are still alive by using some of the numerous planning options available.

There are various steps to follow in estate planning.  The first of these is to make sure that you have a legal Will in place.  Without a Will the proceeds of your estate will be distributed based upon the Laws of Intestacy which can often have unintended consequences for those who are unaware.  A summary of the laws of intestacy are available through this link.  

The second step is to consider your available allowances and exemptions?  The form your wealth takes will often determine how flexible and able you are to pass your wealth on while you are alive.  Sometimes the use of Trusts can be appropriate as this can remove assets from your estate and in some cases provide you with an income if required while you are alive. 

The most damaging consequences occur when people with good intentions make decisions unaware of their impact or effectiveness.  A common misconception is based upon those who wish to move their money or themselves abroad, which in itself will not spare your assets from Inheritance Tax.  Seeking expert advice on the matter however may provide you with some illuminating ideas and great results.

(Will Writing and Trusts are not regulated by the Financial Services Authority.)