Wills and Inheritance Planning

Effective tax planning can substantially reduce the amount of tax payable on your estate, leaving more for your loved ones rather than HM Revenue & Customs.

Leaving your estate to your family, not the tax man.

Most of us are aware that inheritance tax is charged at 40% on the value of your estate in excess of the nil rate band (£325,000 - tax year 2019/2020). Naturally, we would like to leave the maximum legacy to our loved ones and the minimum to the tax man. That can be addressed with careful planning. What isn’t well understood are the conditions and the rules that make this a complex area. For example, did you know if you are not married to your partner then your wealth isn’t automatically passed on and the allowances can be lower? Or that your heirs must pay the tax bill before they receive the inheritance? Or that gifts over £3000 that you make within 7 years of your death still count as your estate? Or that children under 18 can only invest money in certain circumstances, and so a Trust is normally needed if the legacy is passed on after both parents pass away? Or if you are planning to retire to Spain, Inheritance tax will still apply and even if your children live in another country? If you are involved in a business with other partners, passing on your equity to your family also needs careful planning.

It isn’t simple. It needs careful planning, particularly as to not compromise your own retirement income planning. Also, we cannot predict when we will pass on our estate so a tax efficient plan needs to be in place to prepare for all circumstances.

Managing your estate is a process that is best accomplished with careful planning.

bdhSterling's independent financial advisors can help in several ways. To begin with, we can help tax efficiently grow your wealth, so your estate is as large as possible. bdhSterling can then advise on how to set up investments and options to best manage the inheritance tax with minimal compromise to your retirement income plan, which also needs to be considered.

We can ensure you have the appropriate Wills, Trusts and Power of Attorney’s in place that will fit with your overall financial plan. We can help with insurances that can help pay off Inheritance Tax or cover large gifts for the 7-14 years they affect your estate. We can also help during the Probate period with products to help pay the tax due before the estate is received.

You may have received a large inheritance from your parents or family member that exposes your heirs to significant Inheritance tax on your death. We can arrange for this to bypass you and minimise the impact.

Of course, you don’t have to wait to pass on your estate, it can be done at any time, the implications just need to be managed. There are ways to gift your estate without any tax consequences while you are alive. Managing your estate is a process that is best managed over time and with planning. bdhSterling's  independent financial advisors can help you through each stage alongside your other financial planning goals to create an integrated financial plan.

Financial planning that looks at the whole picture.

bdhSterling focuses on holistic financial planning so estate planning is something we always consider and manage. We also have an intergenerational focus so can work with your other family members to ensure it is considered in their financial plan. We have the tools to project your wealth out each year and estimate your estate and Inheritance tax bill.

All of our independent financial advisors have completed the relevant qualifications from the Chartered Institute of Insurance to provide financial advice across all areas related to estate planning. So we are well placed to make recommendations about how to best structure your finances.

As an independent financial planning firm, we have access to the whole market of suitable products and services without bias. This includes advising on how to structure business partnerships and shareholdings to pass on your wealth and use available tax reliefs. We also have law partners that can take care of the legal elements required such as Wills or Last Power of Attorney.

To find out how we can help you mitigate the amount of tax you pay on your estate and incorporate it into your overall financial plan please contact one of our independent financial advisors on 01372 724249 or complete an enquiry form on our website.