First and foremost, your biggest ‘asset’ by a very large margin is ‘you’. Your ability to go to work and earn an ever-increasing level of income is by far and away the post valuable thing you possess.
Most people don’t think of it this way – but it is the truth. Therefore, we need to protect that asset in the same way you would insure your car, your holidays and your family home. If, due to illness or disability you are not able (or willing) to go to work, we can’t have a situation where your largest asset is the least-protected.
This is also true in the event of death. How would your family cope financially in the event of your untimely passing? Unfortunately, in many cases, the answer to this question is ‘not very well’.
What about if you run a successful business either on your own or with other people. How do you realise the value of your share in that business in the event of death or illness and how do you protect the other partners or shareholders to ensure the business can carry on without you?
It is because these thoughts and questions are uncomfortable that we do not ask them of ourselves or contemplate them when we really should.
Our advisors are able to recommend a whole range of protection plans to account for these risks and more. Our independent status also allows us to provide our clients with the best solutions from across the entire market.
Many people are relatively sanguine about inheritance tax. For some, it isn’t a problem due to the overall size of their estates. Others who have a liability sometimes see it as a fair and equitable way of taxing wealthy people for the good of the many.
Most, however, object to paying tax on all their income and gains in their lifetimes and then being taxed again when they leave their assets to children and grandchildren when they die.
Strategic gifting of assets, alongside using other available allowances, can dramatically reduce the overall impact of inheritance tax on your estate.
Some investments, for the right clients, can be removed from the estate for inheritance tax purposes (subject to certain conditions) in a completely legitimate and HMRC-approved way.
The key point is that, if we start early enough, we can help our clients plan properly for a smooth and tax-efficient transfer of assets across generations.
Many of our clients are concerned about making sure the right people benefit from what they leave behind.
The prospect of money and wealth leaving their bloodline in the event of spousal remarriage, divorce or bankruptcy can be too much to bear.
Others find it abominable that local authorities can enforce the sale of property and assets to pay for long term care, leaving nothing for children or loved ones.
If inheritance tax still exists in the future, it is not inconceivable that what you leave behind could be taxed again when your children’s estate is distributed on death.
With the correct estate planning and trusts in place, many of these concerns can be properly addressed.*
*Estate planning services (including wills and trusts) are not regulated by the FCA and are thus carried out by trusted third-parties.
