Being Charitable: A Strategy to Reduce Your Inheritance Tax Bill

Inheritance Tax can impact the assets passed on to loved ones, currently taxed at 40% above certain thresholds. However, strategies like legacy giving can reduce inheritance tax. Legacy giving involves allocating a portion of assets to a charitable cause in your Will, reducing IHT from 40% to 36% when donating at least 10% of your estate to charity. Find out more about your allowances and how legacy giving could become part of your estate plan.

Estate Planning, Estates, Inheritance TaxAmy Wood19 September 2023inheritance tax, iht, charity, Wills

Can My Family Inherit My Pension?

Passing on your pension plan: A tax-efficient way to leave your assets to your loved ones

In the UK, your pension plan does not usually form part of your estate, meaning that it can be passed on to your family without being subject to inheritance tax. This makes it one of the most tax-efficient ways to leave your assets to your loved ones.

To pass on your pension plan, you will need to nominate who you want to inherit it by filling out a form with your pension provider. You can choose to nominate as many people or charities as you like and decide the portion each of them should receive.

Estate Planning, Estates, Inheritance Tax, RetirementVictoria Vyce18 July 2023pensions, inheritance tax, iht, wills

Inheritance Tax Receipts at Record Levels

The government's inheritance tax receipts have reached a record £7.1bn for 2022/23, and are forecast to increase to £8.4bn by 2027/28.

This increase is being driven by a number of factors, including the freeze on the inheritance tax free threshold, commonly referred to as the 'nil rate band', until at least 2027/28. This coincides with the surge in property prices during the pandemic period, further contributing to the overall increase in tax revenues.

If you are concerned that inheritance tax may be due on your estate, it is important to take proactive steps to minimize your potential tax burden. An independent financial adviser can help you to work out the total value of your estate, calculate how much tax your loved ones would potentially owe, and explore options for managing the potential tax bill.

Inheritance Tax, Estates, Estate PlanningAmy Wood18 July 2023inheritance tax, estate planning, iht

[Video] How To Ensure Your ISA Remains tax free

Did you know your ISAs form part of your estate on death? They are then potentially subject to inheritance tax. Many people have saved large amounts with ISAs, taking advantage of their tax-free status over the years.

With the average inheritance tax bill standing at £200k and £7.1bn recorded in inheritance tax receipts in the most recent tax year, don't give away your money unnecessarily. It is possible to convert your ISAs to inheritance tax-free status in two years.

Inheritance Tax, Investments, Estate PlanningAmy Wood14 June 2023inheritance tax, ISAs, Savings

Your Financial Checklist For 2023

The end of the year has come around so quickly, I can’t believe it’s time to start planning for 2023 already!

I want to share a checklist to help you get financially prepared for 2023. If you manage to tick all of these off, you’ll have the clarity and confidence to make your financial plans a reality.

Estate Planning, Estates, Inheritance Tax, Investments, RetirementAmy Wood1 December 2022Wills, gifting, ISAs, LPA

[Video] How To Reduce Inheritance Tax Through Charitable Giving

Did you know you can reduce your inheritance tax rate from 40% to 36% through charitable gifting in your Will? This could result in a significant reduction to any large inheritance tax bill. Watch to find out more.

Estate Planning, Inheritance TaxAmy Wood29 November 2022video, financial planning video, Wills, charity, inheritance tax

Having The Inheritance Conversation

For many, the prospect of passing on wealth to future generations is a significant motivation for carrying out financial planning. Knowing that your hard-earned nest egg is going to be used to help loved ones with major milestones such as going to university, getting married or buying a house can be extremely gratifying.

Having a conversation with your family about your intentions is not always easy especially when managing other’s expectations. Read on to find out how we can help.

Estate Planning, Inheritance TaxAmy Wood7 November 2022inheritance tax, estate planning, Wills

Making Use of the Inheritance Tax Residence Nil Rate Band [Video]

Introduced in 2017, the Residence Nil Rate Band (RNRB) is an amount additional to the Nil Rate Band (NRB) that could be passed on tax-free against the value of the family home. The RNRB could save you tens of thousands of pounds worth of inheritance tax but the rules aren’t that simple.

Richard Higgs explains what you need to know in this brief video.

[Video] Don't Fall In To The 14 Year Inheritance Tax Trap

You may be aware of the '7 year rule' for gifting with regards to inheritance tax (see our guide for full details if not). It is news to some, however that you may need to look even further back - 14 years to be exact - to ensure you are not liable to pay inheritance tax. Find out more in the video and as always, if you have any questions please don't hesitate to get in touch for a complimentary review of your financial circumstances.

Inheritance Tax, Estate Planning, TrustsAmy Wood19 September 2022inheritance tax, 7 year rule, 14 year rule, estate planning, trusts

[Video] Do You Have Disabled Or Vulnerable Beneficiaries?

If you have disabled or vulnerable beneficiaries and you are thinking about setting up your Will, there are a few things you need to think about. It may be possible to create a Disabled Will Trust, which is a type of trust where a third party manages assets on behalf of the beneficiaries. One of the benefits of setting up this type of trust is that it provides substantial tax advantages.

If you would like to know more about this type of trust, including what you need to consider, when it is applied for and what to think about when nominating trustees, watch this 10 minute video from Independent Financial Adviser, Richard Higgs.

Estate PlanningAmy Wood23 May 2022Wills, Will trusts

[Video] Why Do You Need A Will?

In this video, Richard Higgs takes you through why you need a Will, and crucially, what happens if you don’t have a valid Will in place. Take steps today to ensure your estate is treated according to your wishes.

Estate PlanningAmy Wood16 May 2022Wills, estate planning

Why Use A Financial Adviser To Write Your Will?

Many people have simple estates which are straightforward to organise. For others, a Will is just the first piece of the estate planning puzzle. Working with an independent financial adviser (IFA) to write your Will can provide you with confidence that the decisions you are making take in to account your whole financial situation.

Estate PlanningAmy Wood11 May 2022Harold Stephens LtdWills

Don't Fall In To The ISA Inheritance Tax Trap

The tax efficient benefits of saving through an ISA are widely known. Introduced in 1999, today the ISA is seen as a cornerstone to savings and investments. Many people have amassed a significant savings pot, which of course is tax-free.

However, the tax benefits only apply during the holder’s lifetime, meaning the funds will form part of their taxable estate for the purposes of inheritance tax (IHT).

The Cost Of Being Unprepared In Estate Planning

Estate planning is about you deciding what you would like to happen to everything you own on your death and how to provide for those you’ll leave behind. Ensuring your affairs are in order not only makes things easier for your loved ones but can also reduce inheritance tax and protect your estate for your beneficiaries.

Estate PlanningAmy Wood11 May 2022Harold Stephens Ltdestate planning

Making Trusts Simple

When people talk about trusts, they can seem complex and expensive, perhaps potentially only for the super-rich. The reality is they don’t have to be. Put simply, a trust is a vehicle to protect your assets and to guarantee your loved ones financial stability in the future – something we all want to achieve after building a nest egg.

Estate Planning, TrustsAmy Wood11 May 2022Harold Stephens Ltdestate planning, trusts

Do You Know The Role Of An Attorney?

When a person makes a power of attorney (POA), they appoint someone else to act on their behalf. The person making the power of attorney is called a donor and the person appointed to act on their behalf is called an attorney.

The role of an attorney is complex and there are risks. Make sure you are aware of your responsibilities before agreeing and know where to seek help if it is needed.