Estate Planning

In 2016 Citizens advice reported a rise from 1522 queries in 2011 to 3747 queries in 2015 about people who died without making a Will. This can cause financial stress for loved ones at a time when they are also dealing with emotional stress.

HMRC estimates that Inheritance Tax will generate £5.5bn of revenue for them in 2019/20 this can be seen as a voluntary tax as much of the tax can be mitigated with correct and timely planning

Is making a Will enough?

A Will can certainly be enough for a small estate where there are clear beneficiaries and no Inheritance Tax to pay.

Not if you need to consider some of the following

  • Joint tenants or tenants in common on main residence worth in excess of £1m?
  • Multiple properties including Buy to Let
  • Estates in excess of £2m
  • Life Insurances not in Trust
  • Pension Plans where an Expression of Wish is not completed or plan holder reaching aged 75+

In 2019 each person has an Inheritance Tax Nil Rate Band of £325,000 which can be passed onto a surviving spouse or other beneficiary if not used. In addition to the Nil Rate Band a Residence Nil Rate Band has been introduced in 2017 which will be up to £175000 of wealth that can be passed to direct descendants if a property/replacement property/downsized property is/was held before death

To protect your wealth where the estate is above your NRB/RNRBs we can use appropriate Trusts

Should I skip a generation?

Should parents gift to their children or grandchildren or both?

Your children may be disappointed if you chose to pass some of your wealth directly to your grandchildren potentially using trusts or making outright gifts. It may be possible to avoid inheritance tax being paid twice by using this method of generational tax planning

There are a number of easy steps that can be taken to make the most of regular basic exemptions

  • Annual exemption £3000 plus a further £3000 carried forward from previous year if not already used
  • Outright and small gift exemption of £250
  • Gifts from normal expenditure

Using your annual exemptions will help to reduce your liability but not to mitigate the tax in full

For a free telephone consultation with a qualified Financial Adviser Call Regency Wills

(Agents of The Right Will)

Geographic Areas we cover:

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Winchmore Hill, Palmers Green, Bounds Green, Southgate, New Southgate, Friern Barnet, New Barnet, Barnet, Whetstone, Totteridge, North Finchley, Finchley, East Finchley, Hendon, Mill Hill, Edgware, Stanmore, Golders Green, Muswell Hill, Fortis Green, Highgate, Highbury, Islington, Holloway, Stroud Green, Crouch End, Hornsey, Turnpike Lane, Stamford Hill, Clapton, Wood Green, Haringey, Enfield, Edmonton, Tottenham, Chingford, Walthamstow, Leyton, Leytonstone, Forest Gate, Plaistow, East Ham, Barking, Ilford,Hornchurch, Romford, Hainault, Chigwell, Wanstead, South Woodford, Woodford, Buckhurst Hill, Loughton, Waltham Abbey, Waltham Cross,Cheshunt, Broxbourne, Hoddesdon, Ware, Hertford, Cuffley, Potters Bar.

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