Tax & estate planning


Massive house price inflation over the years means more families than ever before, could find themselves subject to Inheritance Tax (IHT).

This situation will only grow worse now that legislation will extend the current freeze of the nil rate band of  £325,000 until at least 2020/21. This is still the Nil Rate Band (NRB) although it has been announced that widows and widowers (and surviving civil partners) could inherit their late spouses unused NRB, so people could effectively have a NRB of £650,000. Anything over this limit is taxed at 40%.

Estate planning is a vital, if often overlooked, part of retirement planning.

We try to encourage clients to view their estate planning as part of their overall financial plan. Making a will, gifting up to your annual allowance and perhaps underused gifting out of income, plus others, are all ways that can have an effect to reduce your IHT liability.

The use of Trusts and the gifting of assets can also save an estate a huge amount of money which would otherwise have to be paid out in IHT.

The first thing to consider is the impact of no estate planning at all. Making a will is often the very first step that people take in their estate planning strategy. If people don’t have a will in place, then the law of intestacy will apply when they die and this can cause problems in that the estate could be apportioned in a way that the deceased may not have wished for.

We can go some way to highlighting the need for estate planning.

The Financial Conduct Authority does not regulate taxation and trust advice or wills.