Everyone has heard about the importance of making a Will, as it is a key document for making provision for your loved ones and planning for the distribution of your Estate upon your death.
In addition to planning through your Will it is important to think about lifetime planning as part of an overall financial health check. Lifetime planning gives you the opportunity to ensure that you take those steps which are appropriate for you and your circumstances, in order to maximise the value of your assets for future generations.
There are fundamental steps which you can take utilising current Government gifting exemption rules to pass on relatively small amounts of money without triggering any Inheritance Tax consequences or the seven-year rule. For larger gifts and those gifts which may help the successive generations to achieve their life goals such as getting on the housing ladder or setting up their own business, careful consideration needs to be given as to how and when they can be made during your lifetime as part of a wider Inheritance Tax planning strategy. By approaching this in a planned and considered manner is critical to ensure that an inadvertent tax charge is not a later consequence of well-intentioned actions.
An important part of your Inheritance Tax planning exercise in seeking to preserve your assets may include the use of Trusts for an assortment of different reasons and for a variety of different beneficiaries. It may be that you have a disabled or vulnerable person within the family who needs special provision being made for them or it may be that you are concerned that your child requires provisions set up in a particular way given that they are facing a particular challenge be that due to their health, their financial position or a difficult relationship.
By reviewing your wealth and talking to a specialist solicitor you will be able to consider the current and future needs of your loved ones and how you can benefit them whilst preserving your assets by planning in a strategic and Inheritance Tax friendly way. This type of planning is complicated and there are many potential pitfalls along the way. You should always seek professional advice before looking to progress any strategy for lifetime planning and preservation of your wealth.
If you have any question on the topic and whatever your needs or circumstances, please do not hesitate to get in touch with myself or a member of our Private Client Team.
