The loss of inherited wealth as it passes down the generations is significant, but it can be addressed.
The principle causes are lack of preparation, education and engagement. By creating opportunities for families to meet, when the time is right to discuss and plan together, we can deliver better understanding and outcomes for our clients.
We have extensive experience in all aspects of Inheritance Tax (IHT), succession and Trust planning. Our aim is to protect and preserve your family wealth by balancing your desire to maintain your standard of living, whilst providing for future generations in the most tax-efficient manner by:
Quantifying your current exposure to IHT
Advising on the optimum use of available tax reliefs
Providing guidance on IHT mitigation strategies including Family Trusts
Considering the interaction of IHT with other taxes
Growth in Wealth
Following the growth of property values over the past 20 years, combined with a fixing of the nil rate band means that more and more families are finding themselves subject to inheritance tax, simply by virtue of the fact that they own property. It is important to consider planning for the tax to ensure that the maximum amount of wealth can be passed down to their successors and beneficiaries. This can be achieved through:
Transfers into trust
Investment into tax advantaged investments
Restructuring into more efficient structures
Taking advantage of overseas reliefs for non-domiciles
Tax efficient will drafting
However, it is vital to ensure that IHT planning is put into place in good time as many of the available reliefs and structures can take between 2-7 years to be effective.
Wills & Trust Planning
A well drafted Will can:
Protect against Sideways dis-inheritance
Mitigate future care home fees
Control how assets are passed down generations
Allow for how your children will be looked after
Allow for specific gifts
Specify your burial wishes
Ensure your children are protected from the risks of early inheritance tax
Establish structures protecting against creditors, divorce and excessive spending
Protect against claims from those who may feel ‘entitled’
Maximise inheritance for your beneficiaries.
The use of trusts is a vital part of Will drafting and can protect assets for generations to come. It can also ensure that those you wish to benefit can do so, but subject to appropriate conditions. It’s also helpful at this stage to ensure that protection via Lasting Powers of Attorney is in place in the event of an unexpected loss of capacity which could result in the Courts appointing individuals to manage your affairs at a significant cost and with significant delay.
Our specialist consultancy service can also assist with the task of managing the estate, assessing inheritance tax, obtaining probate and distribution of assets. A process that is considered to be a very challenging process at a difficult time.