Estate planning is the process of getting your financial affairs in order which allows a smooth transition in event of your death or becoming incapacitated. Not only can this reduce the stress caused, it can also be incredibly tax efficient as it can protect the intergenerational wealth of the family.
Why Estate Planning is important:
It is possible to preserve the wealth that has been accumulated to the benefit of you and your family. Former Chancellor of The Exchequer, Lord Roy Jenkins once referred to Inheritance Tax as a "a voluntary levy, paid by those who distrust their heirs more than they dislike the Inland Revenue."
Certain reliefs and exemptions are available on top of the Nil-Rate Band, which with careful planning can reduce an Inheritance Tax bill which is where the notion of Inheritance Tax being partly "voluntary". Modest funds can also be passed on tax free during the individual's lifetime, which also can reduce the amount of tax paid on death.
Reasons to plan:
- Protect familial wealth as up to 40% of the overall estate could disappear as tax.
- To plan against the possibility of family illness or death.
- Believe that your hard earned money should be passed on to your next generation.
- For family business owners, Business Property Relief and Succession planning could be imperative to the future successes of the business.
Why do people not plan?
- They may not be aware of the full impact of Inheritance Tax or the true value of their estate.
- Talking about money, even with close family is still a taboo subject which prevent all parties to fully engage with the idea of having to plan for the inevitable whether through embarrassment or uncertainty.
- Confusion of how gifting assets to family members works.
- The belief that it is not possible to give assets away due to the fear of running out of money or the possibility of needing care.
Many of these concerns can be addressed with careful planning.
What we can do together:
By understanding you and your entire financial situation, we can see what it is that you value and how it we can in turn maximise and protect that.
Firstly, we will need to ensure you have an up to date Will in place so that your best wishes are seen to and carried through. If not, we shall put you in direct contact with a Solicitor alongside establishing your Lasting Power of Attorney needs to be done before it is too late.
With a Power of Attorney in place, you can be confident that when you are unable to make important decisions regarding your health and welfare or property and financial affairs; they will be taken for you, for your benefit.
We can show you the impact that gifts may have on your overall financial position. Through Cash Flow Modelling we can then determine the extent of what you could afford to gift away without the risk of running out of money.
Lastly, it is worth touching upon how your pension, sits outside your estate and therefore is free from Inheritance Tax. You can, with Panoramic Wealth plan to maximise this.
Client Stories
“We could have left it too late but thankfully met Gary with sufficient time to receive sound and sensible investment advice. On estate planning we were able to direct money into investment contracts with access to access to funds if circumstances changed. And when a family member experienced a major life threatening change Gary provided clear objective advice and guidance.”
Eric Jackson
“We’d just received an inheritance and needed advice on how to invest part of it for our future needs, and to use the remainder to set up investments in a trust fund for my two sons. Through Gary's guidance and help, both sons have been able to get on the property ladder with the purchase of their first homes."
Kevin and Margaret Rivers. Orpington