INHERITANCE TAX ADVICE & ESTATE PLANNING – WEST SUSSEX, SURREY & BEYOND
We help individuals in West Sussex, Surrey and beyond to rest in the knowledge that they are doing everything they can to protect the people they love and care for. Whether you want to leave as much as possible to the next generation or leave a lasting legacy with a charity close to your heart, we can help.
Making sure you live your life well, but plan wisely for the future.
YOUR LOVED ONES
Ensuring your family and loved ones are looked after and financially secure when you’re gone.
Leaving a lasting legacy or charity donation in your memory.
Helping you understand the options available and safeguarding your estate for your loved ones
It’s a sensitive topic, but failure to effectively plan your estate will almost certainly add to the heartache of those you leave behind, at a time when they are already grieving.
As West Sussex-based estate and inheritance tax advisers, we do everything in our power to ensure that your assets are protected in the event of your incapacitation or death.
Concerned about how to protect your family and loved ones from having to pay more inheritance tax than they need to?
Worried about inheritance tax and keen to minimise the impact?
If you don’t have all the relevant paperwork in order when you die, your estate will be settled by the state – a process that can be messy and stressful for those left to manage it.
To make what is sure to be a difficult period easier on your loved ones, it really is advisable to speak to an expert in estate and inheritance tax planning and ensure your assets will be correctly managed upon your death.
Estate planning goes beyond simply offering tax advice. It enables us to look at the long-term picture and make the most of the legal schemes available to find the most tax-efficient ways to manage your estate.
THE IMPORTANCE OF INHERITANCE TAX PLANNING
Inheritance tax will be charged on any part of your estate that exceeds your personal allowance (currently £325,000 for an individual and £650,000 for a married couple) and is a major problem for many families, with even relatively modest estates now facing a tax bill of 40%.
We firmly believe, however, that with careful estate planning and the ability to think outside the box, any potential tax liability can be significantly reduced or even negated altogether.
RESIDENCE NIL RATE BAND
The main residence nil-rate band is an extra property allowance that allows people to leave their homes to family tax-free.
Under the rules, if you’re passing your home to a direct descendant, you can benefit from an additional £175,000 in tax-free allowance in the 2020-21 tax year, up from the £150,000 allowance in 2019-20.
The allowance only applies if you leave your home to a direct descendant – either a child or grandchild. Nieces and nephews, or friends, for example, do not qualify.
Not everyone will qualify for the full allowance.
If your total estate is worth more than £2m, the extra allowance tapers off, falling by £1 for each £2 above the threshold.
GETTING THE PAPERWORK IN ORDER
We can’t stress enough the importance of putting down your wishes in writing. This gives you the greatest chances of having them carried out after your death, or if you were to become physically or mentally incapacitated. Ensure that you have the following documents, and be sure to review them regularly, or if your personal circumstances change:
Last Will and Testament:
Detailing how you wish your assets distributed upon your death
Power of Attorney:
Authorising a person, or persons, to act on your behalf if you’re incapacitated.
Health Care Directive:
Detailing the level and type of care you would wish to receive, should you become incapacitated.
Authorising a person, or persons, to make medical decisions for you, if you are unable to make them yourself, based upon what is stipulated in your health care directive.
DETERMINING THE WORTH OF YOUR ESTATE
What exactly do your assets total? We explore what you own holistically, not forgetting to include the following:
- Personal valuables (vehicles, jewellery, etc.)
- Bank accounts
- Investment accounts
- Retirement plans (SIPP, SSAS, Personal Pension, Defined Benefit etc.)
- Business interests (ownership, equipment, etc.)
- Benefits payable upon death (life insurance, etc.)
Naturally, there will be expenses too, so from this figure, we subtract any liabilities from sources such as:
- Credit card debt
- Mortgage repayments
- Vehicle loans
- Personal loans
This is a straightforward way to gain an overview of what exactly your estate is worth. On an emotional level, it will also highlight any particular valuables or heirlooms you would like to pass down, and to whom. From there, you can start thinking about where you would like to direct the rest of your net worth.
A sensitive and personal approach to your affairs and the matters close to your heart
HERE’S WHAT WE’LL DO:
- Have an honest conversation about your fears, worries and desires for those you will leave behind
- Consider your assets to determine the true worth of your estate
- Review your current circumstances and calculate the likely inheritance tax your beneficiaries will face
- Plan where you would like to direct your net worth and determine whether there are any debts you might like to start paying down
- Get your paperwork in order and ensure your wishes are put in writing
- Work in association with approved and trusted accountants to find the most tax-efficient ways to manage your estate
- Ensure you are making full use of the tax allowances and reliefs available to you
- Create a plan for passing on your assets in the way that you want
- Give you peace-of-mind that your wishes will be carried out as you wish upon your death
GET IN TOUCH:
The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK. Global Financial Ltd is a member of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority. Details can be found at www.fsa.gov.uk under reference number 506634. Global Financial Ltd is registered in England, no. 00922704.
The Financial Ombudsman Service (FOS) is available to handle individual complaints that financial services businesses and their clients are unable to resolve. To contact FOS please visit us at www.financial-ombudsman.org.uk