You work hard to build your wealth and you want to make sure that future generations can enjoy it to the full. Protecting your family and your estate are important decisions that you shouldn’t put off.
Passing on wealth to your chosen beneficiaries - and ensuring that it doesn't fall into the hands of the HMRC - is a key objective for many people. There are steps you can take to limit your tax liability, and we can help you evaluate which ones will suit your circumstances best.
minimise inheritance tax
Inheritance Tax ("IHT") is the tax paid on your estate when you die. Your estate includes everything you own such as savings, property, investments, bank deposits and possibly gifts that you have made in the last seven years.
Currently IHT is payable at the rate of 40% on all assets over £312,000. This threshold will increase to £350,000 by 2010/11. If you think your estate exceeds the IHT threshold – or could do so in the future, speak to us. There is plenty you can do now to plan in advance.
‘gift’ your assets
There are various ways to use your gift allowance, such as:
- gifting up to £3,000 to an individual per tax year
- using income to fund the contributions of a life policy held in trust
- giving up to £5000 as a gift to your children shortly before or on the date of their wedding or civil partnership ceremony
- giving a lifetime gift of capital designed to maintain a dependent
IHT rules say that you must survive a gift by seven years for it to be effective. Provided you do so, there will be no tax to pay on your death.
Discounted Gift Trusts are another way to help reduce your IHT liability. They allow you to make a tax-efficient gift whilst retaining the right to receive regular cash payments for life.
protect against unforeseen events
It’s important to protect yourself and your family against the unfortunate effects of a serious illness, injury or untimely death. If you don’t, the financial consequences could be serious.
Protection can take many forms, including life assurance, critical illness cover, private health cover, long term care and income protection. We will:
- advise on the appropriate policy to cover your risk
- search the market place for the most competitive terms
- ensure the policy is the right choice for you
- take care of administering the set up of the plan
RSM Tenon Financial Services Limited is authorised and regulated by the Financial Services Authority. The content of this website is for general information only and is based on our understanding of current legislation and HMRC practice, which is subject to change.