With house prices rising as they have over the last decade or so, Estate Planning is not just required for the wealthy. More and more people are falling into this tax trap. Many people just keep putting off the planning until it’s too late, yet Inheritance Tax (IHT) is one of the few taxes that can be optional whether you pay it or not. Yet HM Revenue & Customs collected £4.4 Billion in revenues from this in 2015/16 alone, so it is quite clear that many are neglecting to plan properly against it. There are lots of ways in which we can help with estate planning, protecting your home and family assets.
Ensuring that you and your loved ones are protected from unforeseen and tragic events is essential to allow life to continue as you would wish. Insurance is a necessity of modern life, however our priorities can often be put in the wrong order.
- Do you insure your mobile phone but not your life?
- Do you insure your family pet but not your income?
- If so, do you think your priorities are right.
Providing protection in the various forms of life, critical illness, employee benefits, private medical insurance and income protection is the cornerstone of Financial Planning and therefore one of the fundamentals of our business. Take out some cover, it might just be the best thing you do all year. We hope you never need it but if you do you’ll be forever grateful it’s there.
This is for illustration purposes only and used as an example only
If you live in England or Northern Ireland and your personal assets are more than £23,250 you now have to pay the cost of the long term care you will receive.
Aside from the emotional strain of trying to arrange care for you or a loved one, the actual process is very complicated and confusing. There are various issues like mental capacity, state benefits and whether you are eligible as well as Power of Attorney complications. On top of this there is worry over the level of care available and where the home is located and how much it costs.
With average costs now approaching £30,000 per annum the costs involved are huge (Source: The Equity Release Council). We can help in ensuring your money lasts as long as possible and that as much of your estate as possible is protected to pass onto future generations.
There are lots of different solutions, such as using savings or Individual Savings Accounts as well as looking at solutions such as an Immediate Needs Annuity to pay for the cost of care. Whether this is a concern right now or you want to plan for the future, we as suitably qualified Long Term Care Practitioners can assist you with your decisions.
Trusts can be very useful for ensuring that your assets are passed onto the correct people at the correct time. You don’t want a minor having control of a large sum of money before they are able to deal with it correctly. You may also want to prevent funds falling into the wrong hands due to marital break ups or treading the wrong path.
Trustees legally own the assets of the trust but do not benefit automatically. The beneficiaries are the ones that do benefit. Trust planning* can aid a great deal with many forms of tax planning. Speak with an expert for the right advice on how best to set up and use trusts to your own advantage.
* The Financial Conduct Authority does not regulate taxation and trust advice