Inheritance Tax
Gaining peace of mind from knowing your loved ones' financial future is secure
At Burlington Financial, with offices in Bridlington, East Yorkshire, and Scarborough, North Yorkshire, we take pride in offering a holistic approach to financial planning.
It means that we don’t just consider one aspect of your finances; we carefully evaluate every facet of your personal circumstances and financial situation, providing independent financial advice.
We develop tailored strategies that truly prioritise what matters most to you. Whether you’re planning for retirement, looking to protect your family’s future, or navigating complex tax concerns, our bespoke advice ensures you always have peace of mind. Would you like to see how our approach stands apart?
The Financial Conduct Authority does not regulate Trusts, Wills, Inheritance tax and estate planning.
Understanding Inheritance Tax – Could this affect you?
Inheritance Tax (IHT) is a growing concern for many families across the UK. Surprisingly, it’s not just the wealthiest individuals who are impacted anymore. Did you know that more and more people are becoming liable for this tax? With rising property values and stagnant tax thresholds, homeowners and families who might not have considered themselves wealthy are now caught in the IHT net. Could this apply to you, too?
IHT isn’t just about property; it encompasses your entire estate. This includes not only your home but also your savings, investments, pensions, and any life insurance policies not held in trust. When the value of your estate exceeds the nil-rate band, assets above this threshold are currently taxed at a hefty 40%. This tax could significantly affect the wealth you intend to leave for your loved ones. With the thresholds frozen until 2030 and property values rising, more ordinary families face unexpected liabilities. That’s why it’s crucial to start planning early.
What can you do about it?
No one enjoys thinking about taxes, especially concerning passing on what they’ve worked hard to earn. However, there’s good news. With proper planning, you can significantly lessen your IHT liability and ensure that a greater portion of your wealth reaches the people you care about. Have you considered how to tackle this?
One of the simplest and most essential steps is to make a Will. Why is this so crucial? Without a Will, your estate may not be distributed according to your wishes or in the most tax-efficient way. A professionally written Will can clarify your intentions and maximise the potential for tax savings. For example, there’s no IHT payable between spouses, which means your partner can inherit your entire estate tax-free. Did you know that it’s typically the children who face the IHT liability after the death of both parents? This is something worth addressing with a clear plan in place.
Could trusts be the answer for you?
Another effective strategy for reducing IHT is establishing specialised trusts. Trusts can act as a powerful tool for protecting your assets while also offering a chance to minimise tax liabilities. Have you thought about whether this could be a viable option for your situation?
A trust allows you to specify how and when your assets will be distributed. Perhaps you want to prevent your children or grandchildren from receiving a lump sum until they reach a certain age. Or maybe you are looking for a way to transfer wealth while reducing your taxable estate. The type of trust you choose will depend on your goals and circumstances, making expert advice essential. Could a trust be the key to securing your family’s financial future?
Have you considered gifting or equity release?
Have you thought about giving away some of your assets now rather than later? Lifetime gifting is a valuable strategy for reducing your estate’s liability. Did you know that gifts made more than seven years before your death are exempt from Inheritance Tax? Even those given within your annual gifting allowance can help lower the total value of your estate while providing support to your loved ones during your lifetime?
For homeowners, equity release is becoming an increasingly popular strategy. By unlocking some of the value tied up in your property, you not only reduce the size of your taxable estate but also gain access to funds you can use right now. Could equity release help you enjoy your retirement while easing your family’s future tax burden?
Protecting your loved ones with whole-of-life policies
Another option worth exploring is obtaining a whole-of-life insurance policy. This type of policy is specifically designed to cover IHT liabilities, ensuring that your family isn’t left struggling with the financial burden. How does it work? Depending on your needs, you can choose a policy in your name or a joint policy for you and your spouse. With proper advice, you can customise this policy to fit the needs of your estate and ensure your legacy is protected.
Did you know you can review and adjust these policies over time? Regularly assessing them as your estate evolves helps maintain the appropriate level of cover. This way, you can enjoy peace of mind, knowing everything is in place to alleviate the financial burden on your beneficiaries. Could this reassurance be worth exploring further?
Are you prepared to talk about how a greater share of your wealth can benefit your loved ones?
At Burlington Financial, we offer independent financial advice and adopt a proactive approach to Inheritance Tax planning. By addressing these matters now, you can ensure that more of your wealth is passed on to your loved ones, providing peace of mind knowing your financial future is secure. If you’re worried about inheritance tax and its possible effects on your estate, our team is ready to assist you.
We will collaborate with you to create a personalised plan that reflects your unique circumstances and priorities. Our expert team in Bridlington and Scarborough is ready to assist you. Call us today to schedule an initial no-obligation consultation at our expense, or contact us online to begin your financial planning journey. Together, we will secure a brighter financial future for you and your family.
