At a very basic level, have you got a will which was drafted in the last 5 years? If not, then you definitely need to have this reviewed, not necessarily from a tax viewpoint, but to ensure that your wealth goes to your heirs as you wish and in an orderly fashion. We can carry out will reviews and drafting and the questions we then ask you might lead to other matters which could be improved for you.
Traditionally, a wealthy family would have its assets protected by trusts. The tax benefits of trusts are less than they used to be, but they still have their place in tax planning for many families. If you are married and have your own business, has anyone advised you that, by using trusts you can obtain Inheritance Tax exemption on the value twice? Apart from trusts, family investment partnerships can also be useful in mitigating this tax.
Although not a comprehensive list, sensible tax planning steps can involve:
- Maximising reliefs and exemptions to minimise the ultimate liability;
- The use of trusts, to retain a degree of control while removing the assets form the person’s estate;
- Tax effective and flexible wills;
- Lifetime giving, while ensuring attendant Capital Gains Tax implications are minimised;
- Moving ownership of assets around a family for greater tax effectiveness;
- Tax planning arrangements in connection with the family home;
- Avoiding pitfalls, such as gifts with reservation of benefit and pre-owned assets;
- Tax planning and the professional business.
To discuss this with us on a non-judgmental, discrete and no cost basis call our helpline 0800 001 6686 or contact us today.
Gary Brothers and Mike Leigh are regular contributors to a number of professional forums. The current blogs are here, and our archived blogs can be found by checking on the link below.