Taking care of your wealth as you get older
05 June 2019
Inheritance tax can cost loved ones hundreds of thousands in the event of your death, yet it is possible to legally avoid huge swathes of it, or possibly pay none at all.
As Benjamin Franklin once said, the only things that are certain in life are death and taxes, and inheritance tax touches on both of them. When you die, the Government assesses how much your estate is worth, then deducts your debts from this to give the value of your estate. Your assets include:
- Cash in the bank
- Any property or business you own
- Payouts from life insurance policies
After years of rocketing house prices, many people have been caught out by the inheritance tax threshold, moving the topic higher up many people’s agendas. Yet, whatever your views politically, inheritance tax is a financial fact, so it makes sense to know how it will affect you, and good planning will determine whether you can achieve your objectives. Making a will and planning for care fees are therefore an important part of this exercise.
Money given away before you die can be counted as part of your estate in certain circumstances, hence subjecting it to an inheritance tax charge. Certain gifts are, however, tax-free. This means early planning of how to pass on your assets is imperative to ensure the maximum value goes to the preferred beneficiaries.
Inheritance tax is therefore clearly a huge area of interest. After all, you don’t want to be super-savvy all your working life, only to have little control over the ultimate destination of your accumulated wealth in the final chapters. If that’s what you’re worried about, please contact us at your earliest convenience as we can help!
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