A Guide to Estate Preservation

Navigating your options for passing on wealth

Guide To Estate Preservation

You’ve worked hard all of your life to get to where you are, and providing for those you care about is important to you. However, just owning your own home and having sufficient capital to provide a reasonable income during your retirement may leave your estate with a sizeable IHT liability.

If you want to have control over what happens to your assets after your death, effective estate planning is essential. After a lifetime of hard work, you want to make sure you protect as much of your wealth as possible and pass it onto the right people.

Exposed to Inheritance Tax

If you do not plan for what happens to your assets when you die, more of your estate than necessary could be exposed to Inheritance Tax (IHT). You want to be sure that the right people will get the right amounts at the right time – and that they are ready to receive potentially large sums.

Currently, IHT is charged at 40% on all that you own over £325,000. Your estate can pass tax-free to your spouse or registered civil partner when you die. This can mean a joint allowance of £650,000.

New property allowance

From 6 April 2017, the Government is introducing a new, additional tax-free allowance for people who own a home. This is called the ‘family home allowance’. It will be gradually phased in and will eventually be worth an additional £175,000 per person. Combined with the £325,000 allowance we each already receive, this means a new allowance for property owners of £500,000 – or £1 million for couples.
However, when you consider the value of your home and possibly other properties (as well as savings and investments), this allowance can soon be used up.

Estate planning possibilities

Estate planning is about more than just tax. It is about making sure the people left behind are financially supported, that your assets are protected and that the tax your estate pays is fair.

From essential estate planning, such as the establishment of Wills and power of attorney, to options such as making the most of exemptions, giving away excess income and creating trusts, there are numerous estate planning possibilities.

Everyone has different requirements and motivations – the right solutions for you are the ones that suit your personal circumstances. We can work with you to discover what these are. Our specialist estate planning advice is designed to help you maximise your wealth and minimise IHT.

We provide the professional advice and ongoing service needed to help you achieve your financial goals and keep your investments on track. To discuss your requirements or to review your current portfolio, please contact Mercier Allen today and we will be delighted to help you.

A Guide to Estate Preservation: Making a Will
A Guide to Estate Preservation:
Making a Will

Everyone should have a Will, but it is even more important if you have children, you own property, you have savings, investments or insurance policies, or…. Read More »

A Guide to Estate Preservation: Lasting Power of Attorney
A Guide to Estate Preservation:
Lasting Power of Attorney

There is a distinct possibility that you could lose the capacity to deal with your affairs well before you die. Lasting Powers of Attorney (LPAs) are…. Read More »

A Guide to Estate Preservation: Inheritance Tax
A Guide to Estate Preservation:
Inheritance Tax

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A Guide to Estate Preservation: Inheritance Tax Exemptions
A Guide to Estate Preservation:
Inheritance Tax Exemptions

Making a gift to your family and friends while you’re alive can be a very effective way to reduce the value of your estate for Inheritance Tax (IHT)….. Read More »

A Guide to Estate Preservation: Alternative Exemptions
A Guide to Estate Preservation:
Alternative Exemptions

Depending on how you own the business and what type of business it is, you could receive either 50% or 100% tax relief on it. Business Relief….. Read More »

A Guide to Estate Preservation: Trusts
A Guide to Estate Preservation:
Trusts

If you want to mitigate the effects of Inheritance Tax (IHT) on your estate, trusts can be an important part of the process. When you put casho….. Read More »

 

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