Don’t leave less money behind for your loved ones Effective estate preservation planning could save a family a potential Inheritance Tax bill amounting to hundreds of thousands of pounds. Inheritance Tax was introduced in 1986. It replaced Capital Transfer Tax which had been in force since 1975 as a successor to Estate Duty.

Passing on your wealth in the right way is key for its preservation The rise in property prices throughout the UK means that even those with modest assets may exceed the £325,000 Nil-Rate Band (NRB) for Inheritance Tax. On 6 April 2017 the Residence Nil-Rate Band (RNRB) band came into effect. It provides an additional … Continue reading “Inheritance Tax Residence Nil-Rate Band (RNRB)”

Don’t leave considerable costs and complications, alongside the heartache of grieving If you want to be sure your wishes are met after you die, then it’s important to have a Will. A Will is the only way to make sure your money and possessions that form your estate go to the people and causes you … Continue reading “Where theres a Will theres a way”

Held for the benefit of a specified beneficiary They’re also known as ‘Absolute’ or ‘Fixed Interest Trusts’, and there can be subtle differences. The settlor – the person creating the Trust – makes a gift into the Trust which is held for the benefit of a specified beneficiary. If the Trust is for more than … Continue reading “Bare Trust”

Wide class of potential beneficiaries With a Discretionary Trust, the settlor makes a gift into Trust, and the trustees hold the trust fund for a wide class of potential beneficiaries. This is known as ‘settled’ or ‘relevant’ property. For lump sum investments, the initial gift is a chargeable lifetime transfer for Inheritance Tax purposes.

Discretion over which of the default and potential beneficiaries actually benefit These are similar to a fully Discretionary Trust, except that alongside a wide class of potential beneficiaries, there must be at least one named default beneficiary. Flexible Trusts with default beneficiaries set up in the settlor’s lifetime from 22 March 2006 onwards are treated … Continue reading “Flexible Trusts with default beneficiaries”

Family protection policies These Trusts are often used for family protection policies with critical illness or terminal illness benefits in addition to life cover. Split Trusts can be Bare Trusts, Discretionary Trusts, or Flexible Trusts with default beneficiaries. When using this type of Trust, the settlor/life assured carves out the right to receive any critical … Continue reading “Split Trusts”

Taking control of decisions even in the event you can’t make them yourself A Lasting Power of Attorney (LPA) enables individuals to take control of decisions that affect them, even in the event that they can’t make those decisions for themselves. Without them, loved ones could be forced to endure a costly and lengthy process … Continue reading “Lasting Power of Attorney”

Six tips for wealth preservation and transfer planning Whether you have earned your wealth, inherited it or made shrewd investments, you will want to ensure that as little of it as possible ends up in the hands of HM Revenue & Customs.