Estate Planning

Estate planning is also known as Inheritance Tax planning. In brief and basic terms, when a person dies if the value of their estate i.e. everything they own outright  is more than £325,000 (£650,000 for married couples and civil partners) every £ above that figure will incur 40% Inheritance Tax (IHT). The fundamental purpose of estate planning is to anticipate and, if possible, mitigate that potential outcome. By removing as much of a person’s assets from their direct ownership before he or she dies, the amount of IHT payable can be reduced, leaving more for the beneficiaries to inherit.

There are many options for reducing IHT; some of the more basic steps include:

  • Making special provisions and requests in a will
  • Gifting capital while still alive
  • Using trusts
  • Taking out a life insurance policy

Your adviser can help you establish an IHT plan that reflects your needs and wishes and will ultimately yield maximum benefits for your family and heirs.