To keep wealth within your own family, Tony explains how to make suitable plans for how much you can safeguard for the people that you care about on your departure.  Inheritance tax can cost families thousands of pounds but there are ways to legally avoid paying this tax.

KEY TAKEAWAYS

• Without making suitable plans your loved ones could face the prospect of paying 40% tax on the value of everything you leave for them above a certain threshold.
• Estate planning gives you control over what happens to your assets when you pass away. It also ensures that the assets are transferred in an orderly and uncomplicated fashion at a time when complicated financial issues are most unwelcome.
• Write a will. A will puts you in control of what happens to your assets as well as appointing who is in  control of those assets and their distribution after your death.
• Make a Lasting Power of Attorney. Consider preparing these documents to be ready to put in place should you become incapacitated from managing your own affairs.
• Plan for Inheritance Tax. Gift assets while you are still alive which you can do up to the value of £325,000. Gift allowances are up to the value of £3000 which cannot be taxed unless you survive 7 years beyond the date of transfer. Wedding gifts are allowable up to £1000 per person, or £2500 for a grandchild and £5000 for a child
• Consider investment in inheritance tax exempt assets. The Enterprise Investment Scheme gains tax relief via business relief subject to a 2 years holding period. 
• Life insurances kept in trust can avoid inheritance tax by being paid directly to your inheritors rather than your estate with no need for probate.

BEST MOMENTS

‘If you pass away and don't have provisions in place to preserve and protect your assets then your family may end up spending a substantial amount of time and money battling over your wealth.'

‘The process involves developing a clear plan that details how you would like all of your wealth and property to be distributed after your death.'

‘In essence you are appointing somebody that you trust who will look after your affairs in your best interests.'

‘Another option to consider is keeping your wealth within your pensions. A defined contribution pension is normally free of inheritance tax unlike many other investments.'

VALUABLE RESOURCES

Tony Talks Wealth - https://omny.fm/shows/tony-talks-wealth  

Sign Up Now For Exclusive Tony Talks Wealth Content at https://www.patreon.com/TTWealth  

Wills, Lasting Powers of Attorney, Trust and Estate Planning Specialists - Kinherit

ABOUT THE HOST

Tony Thomas is a published author, one of the top financial advisers in the UK voted for by his clients, the first Chartered Financial Planner in the UK, Independent Financial Adviser, Mentor, Trainer. Life Planner and Money Coach. He is also a pension and investment specialist as well as the regional Chartered Champion for South Wales.  

“Live For Today, Invest For Tomorrow”

CONTACT

Tony's official website: https://ttwealth.co.uk/

Facebook: https://www.facebook.com/TonyThomas.IFA/

LinkedIn: https://www.linkedin.com/in/tonythomas2/

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