Financial Advisers can advise on inheritance tax planning
Tuesday 11 December, 2018
Tracy Dove, Thomas Oliver’s Basildon, Essex Financial Adviser and Financial Planner, reviews how Thomas Oliver assists clients with inheritance tax planning.
What is Estate planning?
Estate planning is an important part of the financial advice we offer. An estate is the total value of a person’s assets. If you have assets including a house, savings or investments you may consider employing a financial adviser to ensure you make plans for the transfer of your estate on your death, so you can pass on any accumulated wealth tax efficiently to your beneficiaries.
What is the nil rate band?
The nil rate band is the value of an estate not subject to inheritance tax in the United Kingdom. The standard nil rate band is £325,000 in 2018/19 for an individual, although the amount could be different depending on your individual circumstances. This figure is forecast to increase in line with inflation from April 2021. If the value of an individual’s estate is less than £325,000 no IHT should be paid.
There is no inheritance tax to pay between couples who are either married or in a civil partnership. Your executors can claim any unused part of your partner’s £325,000 nil rate band if your spouse or civil partner dies before you, as long as they leave everything to you. However, any money left to other members of your family including children or grandchildren could reduce the transferrable amount. Therefore couples could currently leave an estate worth up to £650,000 without it attracting inheritance tax.
Tracy Dove, Thomas Oliver’s Basildon, Essex Financial Adviser and Financial Planner, said: ‘A financial adviser can review your estate and make recommendations so your family can inherit more of your estate when you die and ensure you don’t pay more inheritance tax than is necessary. We often meet clients and give them estate planning advice. One of the first things we discuss is whether clients have a will and whether they should set up Lasting Power of Attorney. We offer financial advice to many clients who live in London or Hertfordshire. Some of our clients who own their home and have other assets may want to consider inheritance tax planning because their home may have increased in value and they may be above the inheritance tax threshold. Other clients may be looking to downsize and pass money to their children. Anyone who can afford to make gifts during their lifetime may be able to reduce the amount of IHT payable on their estate. If you make ‘lifetime gifts’ to your family these will not be included in your estate if you survive over seven years. For this reason we recommend clients get estate planning advice early.’
Tracy Dove, Thomas Oliver’s Basildon, Essex Financial Adviser and Financial Planner, continued: ‘We often advise clients to discuss inheritance tax planning with their older children so that all the family are aware of their situation and what they are planning to do with their finances. When we meet couples we offer them the opportunity to bring their adult children to our financial planning meeting so they understand our recommendations and can see how our financial advice will affect them. If you want inheritance tax planning advice please call the financial advisers at Thomas Oliver on 01707 872000.’
The Financial Conduct Authority does not regulate Estate Planning.
