PASSING WEALTH ONTO YOUR LOVED ONES?
Two things are particularly important when planning to leave an inheritance: ensuring that the right people inherit your wealth and reducing inheritance tax.
Estate Planning is the process of managing assets in the event of incapacity or death. Your possessions, property, pensions and money are all potentially part of your estate. We can guide you through any potential tax liabilities that you or your family could be faced with and aim to reduce your inheritance tax accordingly.
We can offer financial advice on preserving your family’s wealth through financial gifting, trusts and other tax efficient ways to provide for your children and grandchildren’s futures. The earlier that you start planning, the easier it will potentially be to achieve your objectives. So, get in touch with one of our Financial Advisers today.
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Could you reduce the Inheritance Tax that your loved ones have to pay on your estate?
Under current legislation, anything over £325,000 will potentially be taxed at 40%. If you are married or in a civil partnership, you can inherit any of your spouse’s or civil partner’s unused allowance and pass on up to £650,000 tax free.
If you who own a home, or share of a home, and are leaving it to a direct descendant, for example to your child, you are entitled to an additional allowance, called the Residence Nil Rate Band. This effectively increases the threshold for Inheritance Tax and any unused allowance can also be transferred onto your spouse.
Inheritance Tax Planning often forms a large part of estate planning and is a complex area, as the decisions made can have long-term effects. Rising house prices mean Inheritance Tax is becoming an issue for more and more people. Our advisers can help you to minimise the amount of tax payable and improve the amount your loved ones receive.
When advising you on Inheritance Tax planning and how you can reduce the tax you pay, we will consider making a tax-efficient Will, Gifting, using Trusts and Life Insurance.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. Our advisers will ensure you have all the information you need regarding the current legislation and how it will affect your inheritance tax. If you would like to make a query, then call us on 0117 973 0500 and speak to one of our friendly team.
Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place and along with Trusts are not regulated by the Financial Conduct Authority.
Frequently asked questions
In the 2024/25 tax year, the tax-free inheritance tax allowance is £325,000. The inheritance tax rate is potentially 40% of anything in your estate over the £325,000 threshold.
You can give your child up to £3,000 worth of gifts each tax year as an annual gift exemption without it being added to the value of your estate. In addition, there are also other annual exemptions that may be available dependent on circumstances.
You do not pay tax on a cash gift, however once received and then invested the capital could produce future income which may be taxable. In addition, should the person who made the gift die within 7-years of the gift, the recipient of could have a potential Inheritance Tax liability.
To reduce your inheritance tax, our advisers will work with you to go over all the steps you can take whilst remaining compliant. Call us today on 01179730500 or fill in our form below to arrange a face-to-face meeting.
