Estate planning puts you in control of passing on your wealth
As a nation we’re living longer and so family conversations around managing wealth in later life and passing it on to the next generation have never been so important. Estate planning could help you to pass on your wealth smoothly and efficiently, avoid family disputes, and manage the tax bill.
Our expert financial advisers are here to help you plan for your financial future.
44% of people are planning to pass on their wealth to loved ones*
78% of over 60s admit that they have no estate planning strategy in place*
70% of over 60s have supported their children financially during their lifetime*
65% of people say they rarely or never discuss inheritance with their children*
A plan to make sure that your estate is passed on safely and securely
The intergenerational wealth divide means that more and more families are thinking of passing on wealth while they are still alive as well as leaving cash, assets and property to family in their will.
Such a move could provide much-needed support to children who are funding school and university fees and who are facing a pensions funding gap, and to grandchildren who are battling to get on the housing ladder.
Our advisers could help you explore all your options to create a succession plan best suited to you and your family’s circumstances.
* Source: Schroders Personal Wealth Family and Finances Report, May 2021
Estate planning should be a priority, whatever your life stage
When roles reverse
From our first words to our first home, many of our parents have been there to celebrate the major milestones in our lives. And in the days, weeks, months and years in between they have often supported us in innumerable silent ways.
But the sad fact is that aging can take its toll on us all. On our physical health and on our mental health.
It’s better to have meaningful conversations with your parents whilst they still have the ability to make decisions about their own futures, than to leave it until a crisis happens and you’re left wondering and stressing about what to do for the best. Trying to imagine what our loved ones might have done in a given situation can be harder when we are under emotional stress and under pressure to make a decision.
Being there for your parents when they need you the most
Read our guide to supporting your parents through their later life. Discover more about:
Power of Attorney
Caring for your parents
Finding the right care for your parents
Dealing with your parent’s estate
Our expert financial advisers could help you pass on your wealth effectively
Pensions and inheritance
Pensions can play a big part in your estate plan as they can be passed on to your spouse, children or grandchildren tax free. If you’re able to fund your retirement using assets other than your pension you could pass it on to your loved ones whilst gradually reducing the size of your taxable estate.
Wills and estate planning
Estate planning is preparing a plan for transferring your assets to your beneficiaries or next of kin. This could allow you to pass on more of your estate by transferring assets in a tax-efficient manner. Using trusts and gifting to loved ones can be a great way to pass on your wealth effectively.
Power of Attorney
A Power of Attorney is a written authorisation that allows named individuals to represent you, or act on your behalf in your private or business affairs, or legal matters. Whilst a will details our wishes on our death, it’s just as important to ensure we’re prepared in case our faculties desert us.
Trust funds for inheritance planning
Trusts funds can be an effective tool for estate planning. By setting up a trust you can effectively put the money outside of your estate immediately for inheritance tax purposes (without having to survive seven years) whilst retaining the ability to access the income and the capital.
Estate administration service
Administering an estate when someone dies can be daunting. We understand that you won’t want your family to worry when that time comes. Our banking partner, Lloyds Bank, can support your loved ones with every detail – from securing property and having heirlooms valued, to re-homing pets.
Inheritance tax is a tax on the estate of someone who has died, including all money, property, land, jewellery, shares, cars and more. Through effective estate planning you could help to safeguard your wealth so that more of your hard-earned money goes to your loved ones rather than the tax man.
Pensions are a long-term investment. The retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Are you investing for the future you deserve?
We believe planning for your financial future is one of the best investments you can make. Whether you're looking to invest your money, or save it for your retirement, we aim to help you build your long-term wealth in the most tax efficient way. Whatever your goals, a financial plan could help you achieve them.
Understanding more about estate planning: Wealth lens
How life insurance could help with estate planning
Two things are said to be guaranteed: death and taxes. Having the right insurance policies in place could provide invaluable relief to your loved ones. Especially at a time when they are at their lowest.
A guide to inheritance tax
Handing over cash, property and assets to loved ones could offer a much-needed boost to grown-up children moving up the property ladder or even to grandchildren saving for their first home. It can also be a very tax efficient way of reducing the size of your estate for inheritance tax (IHT) purposes.
Frequently asked questions about estate planning
What is inheritance tax?
Inheritance tax (IHT) is the tax on the estate of a person that has passed away. The word estate sounds grand, but essentially this covers money, possessions and property.
Collectively, these are known as your assets.
The standard rate of inheritance tax is set at 40%. The threshold is £325,000. So, if your estate is worth less than this amount (known as being below the nil-rate band), then there will be no tax for your family to pay when you die.
This amount is set by the Government and is called the nil-rate band, because it’s the amount you pay a ‘nil-rate’ of IHT on. It can be compared to income tax whereby you only pay tax above your personal allowance.
Married couples and civil partners can inherit their spouse's entire estate tax free. They can also now add any of their spouse’s unused IHT allowance to their own to increase the potential nil-rate band of their estate.
If none of the first spouse’s tax free allowance is claimed, this means a couple can effectively pass on £650,000 before inheritance tax has to be considered.
What is the seven-year rule?
Whilst some gifts are exempt from inheritance tax, other gifts are classed as Potentially Exempt Transfers (PET). This means there is no tax charge at the time of gifting, and provided you survive for seven years there shouldn’t be any liability to inheritance tax on your death.
The rules around this are complicated and you should seek specialist tax advice when considering making any gifts.
Why is it important to write a will?
If you die without making a will – known as intestacy – you could leave your heirs with a major headache trying to sort out your estate. Writing a will not only means you can detail exactly how you would like your assets to be distributed after your death, it can also be used to help reduce your tax bill.
Using a solicitor to draw up your will ensures that your legacy is structured correctly and getting professional advice on tax planning can ensure your will is as tax-efficient as possible.
Depending on the size of your potential estate and any gifts already made during your lifetime, they might also suggest setting up a trust to manage your legacy.
If you already have a will, it’s worth revisiting it regularly. You might need to do so to benefit from the new residence nil-rate band, for example.
Let's start with a free initial consultation
We'll begin with a free, no obligation conversation to understand if our service is right for you. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.