Nadeem Umar 9 July 2019
Not the birds and the bees… but what happens to your money when you’re gone.
We’re often a bit squeamish about talking about our finances, even with those who’ll be most affected by it. But, at some point, we all have to have the money talk.
Getting your family involved early lets them know what to expect when the time comes. You don’t need to disclose every last detail – it can be as simple as reassuring them that you have the basics of estate planning in place. That you have enough money to live on, a valid will, an appointed power of attorney and a list of assets recorded somewhere.
Want to know more about the basics of estate planning?
It’s also a chance to address any awkwardness, like your choice of executor, who is in charge of distributing assets or why you’ve decided to leave money in trusts rather than gift outright.
Not ready to have the talk yet?
Don’t worry, less than half of people know about inheritance tax rules.
But with over £5.4bn paid last year in inheritance tax, planning now could save your loved ones thousands.
The first step is to work out whether you’ll actually be affected by IHT. The simplest way to check this is by using our online calculator – it does all the work for you. Although it doesn’t take into account your personal circumstances.
Before you start looking at reducing your potential IHT bill, you need to have some basics in place. These include prioritising your own financial security, writing a valid will and selecting your attorney.
You can then consider ways to reduce IHT – three well-known ways are to spend, gift and invest. But there are plenty of lesser-known ways like using trusts and pensions.
If it looks like you will have an IHT liability you should consider talking to an expert. Tax rules and benefits are constantly changing and depend on your circumstances, a financial adviser can check you’re up-to-date and are making the most of your personal allowances.
There’s a lot to think about with estate planning. More information and helpful tips can be found in our guide.
Taking financial advice as a family
One of the most common reasons clients speak to an adviser is to put a plan in place for when they’re gone. Losing a loved one is a difficult time and this can be exacerbated by dealing with the financials. Preparation can make it a much easier process, and provide peace of mind.
The number of families that want to engage all members in financial planning is growing. It makes a huge difference to involve all the family, and it often reduces difficulties further down the line. Our financial advisers help clients in these circumstances every day.
We won’t waste your time or money.
Book a call back and we’ll help you understand whether IHT is likely to affect you, and whether you could take action to reduce this.
If it looks like we can help you keep more money in the family, we’ll book your free initial consultation with a specialist. There’s no pressure to take advice, but if you choose to, there’ll be a charge, which we’ll clearly explain to you.