Estate planning

Estate planning

Inheritance Tax (IHT) was originally introduced to ensure that the assets of the most affluent families were re-distributed to fund the state.

However, following the growth of property values over the past 30 years, combined with a fixing of the nil rate band, more and more families are finding themselves subject to IHT.

For families that will have assets subject to IHT, it is important to consider planning to ensure that the maximum amount of wealth can be passed down to their successors and beneficiaries. This can be achieved through:

• Lifetime gifts
• Transfers into trust
• Investment into tax-advantaged investments
• Restructuring into more efficient structures
• Tax-efficient will drafting

However, it is vital to ensure that IHT planning is put into place in good time as many of the available reliefs and structures can take between two and seven years to be effective.

The Financial Conduct Authority does not regulate taxation and trust advice
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The value of your investment can go down as well as up and you may not get back the full amount invested.
Changes in the exchange rate may increase the sterling equivalent of your debt.
Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.
Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.