Preserving a family’s legacy, values and lessons learned over a lifetime
Passing on wealth to the next generation is about more than money. It’s an opportunity to preserve a family’s legacy, values and lessons learned over a lifetime. By engaging in strategic planning, you can reduce the burden of taxes while ensuring your heirs are well-prepared to step into their roles as custodians of your legacy.
Extra tax-free allowance introduced on 6 April 2017
The Residence Nil Rate Band (RNRB) is an extra tax-free allowance introduced on 6 April 2017. It is applicable to estates where a residence or its value is inherited by the deceased’s direct descendants, including children or grandchildren. For the 2024/25 tax year, the maximum RNRB is £175,000, which offers relief to those whose estates surpass the £325,000 Nil Rate Band (NRB) threshold for Inheritance Tax.
Valuable opportunities to strategically reduce your estate’s tax liability
Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs) broadly define gifts made during an individual’s lifetime. Their classification depends on the nature of the gift and the recipient. It is equally important to note that some lifetime transfers are exempt, meaning they are not subject to tax.
Your Last Will and Testament is an essential document that clarifies and controls how your estate will be handled after your death. It allows you to make detailed decisions about who should inherit your wealth, ensuring that your wishes are carried out smoothly and effectively.
Peace of mind and clarity for your loved ones during challenging times
Preparing a Will is an important step in ensuring that your assets are distributed according to your wishes after your death. It offers peace of mind and clarity for your loved ones during challenging times.
Safeguarding your wishes, maintaining control and providing certainty
Estate planning encompasses much more than merely deciding who inherits your assets. It serves as a means to safeguard your wishes, maintain control and provide certainty for your loved ones. One of the most vital components of an estate plan is the inclusion of a Power of Attorney (POA). This legal document ensures that a trusted individual is authorised to make crucial decisions on your behalf when you are unable to do so.
How the changes to private pensions could impact your legacy
For years, private pensions have offered a tax-efficient way to pass on wealth to loved ones. Currently, any money left in a private pension fund upon death is exempt from Inheritance Tax (IHT). However, this long-standing benefit is set to end. Following announcements by the Chancellor of the Exchequer, from April 2027, private pensions inherited by beneficiaries will no longer escape IHT.
How to ensure your hard-earned prosperity benefits future generations
Many of us work diligently to achieve financial independence. Whether it stems from years of hard work, savvy investments or an inheritance, building wealth is an accomplishment to be proud of. However, with this achievement comes a responsibility – to ensure your hard-earned prosperity benefits future generations without being severely diminished by taxation, particularly Inheritance Tax (IHT).
Education is one of the most significant and rewarding investments you can make for your child
For many students, starting university marks an exciting new chapter in life. It’s a leap forward in education and career aspirations but also brings financial challenges. Anxiety over tuition fees and living costs is common, as many underestimate the actual price of higher education.
Make the most of your financial situation before the deadline
The end of the tax year is fast approaching, ending on 5 April 2025. This is your opportunity to review your annual allowances and assess how best to make the most of them. With some significant changes to tax allowances in the 2024/25 tax year and further reductions expected in the future, planning ahead is key.
Recent Comments