Inheritance Tax Planning
Passing assets efficiently to the next generation
No one wants to think about their hard-earned wealth going to waste after they die. It’s up to you to decide who gets what. The people who could benefit from your estate include your partner or spouse, children and other family members, friends, and charities. Family dynamics are complex, but they tend to be the main beneficiaries.
Sorting out your finances early can help the people left behind when you die. There are many things to consider when looking to protect your family and your home. Protecting your estate is ultimately about securing more of your wealth for your loved ones and planning for what will happen after your death to make the lives of your loved ones much easier. It’s not nice to think about, but it means that your loved ones can carry out your wishes and be protected from Inheritance Tax.
If you don’t make the right financial arrangements, your family could potentially have to foot a hefty Inheritance Tax bill in the event of your premature death. Passing assets efficiently to the next generation remains a primary objective for many who have spent a lifetime accumulating their wealth. Providing funds for family members or a charitable interest is also an important way to see the benefit of your wealth during your lifetime, as well as leaving a legacy.
Inheritance Tax is payable on everything you have of value when you die, including:
- Your home
- Jewellery
- Savings and investments
- Works of art
- Cars
- Any other properties or land – even if they are overseas
Peace of mind after you’re gone
Making sure that you’ve made plans for after you’re gone will give you peace of mind. It’s not nice to think about, but it means that your loved ones can carry out your wishes and be protected from Inheritance Tax. You don’t have to be wealthy for your estate to be liable for Inheritance Tax when you die.
Any part of your estate that is left to your spouse or registered civil partner will be exempt from Inheritance Tax. The exception is if your spouse or registered civil partner is domiciled outside the UK. The maximum you can then give them before Inheritance Tax may need to be paid is £325,000. Unmarried partners, no matter how long standing, have no automatic rights under the Inheritance Tax rules.
What else do I need to know?
The Financial Conduct Authority does not regulate tax and estate planning.