Inheritance Tax and Estate Planning

Inheritance tax is a hugely important issue for everyone to consider, especially perhaps those who are starting to reach their later years. It should be noted, however, that it’s something you really should prepare for a lot earlier than that. If you’re keen to make sure those you leave behind don’t have to pay more than necessary in inheritance tax when you die, a chat with the team at DJC Wealth Management is highly recommended.

People who have a sizable estate could leave their beneficiaries open to extremely large tax liabilities, and it’s a sad but inevitable fact that many individuals have been faced with such problems as a result of a lack of preparation. The amount due to be paid in inheritance tax will depend on the size of your estate, and for some it’s easy to underestimate how much that estate is actually worth. If you have more than one property, for example, as well as savings, stocks and shares, vehicles, artworks, expensive jewellery, high end antiques and so on, you may be surprised at your actual net worth. If you leave everything you own to a son or daughter, they could then be liable to inheritance tax on a worrying scale. In 2020-21, for example, everything over £325,000 is liable to be taxed at a rate of 40%. If your overall estate is worth £1,000,000 when you die, under current regulations your child could be liable to pay up to £270,000. If you have a great many assets and a great deal of wealth, it’s easy to see how inheritance tax can swallow up a sizable amount of everything you’ve worked hard to obtain during your life.

Seeking to legally and legitimately reduce your inheritance tax liabilities is a very sensible approach, and it’s one that has become a major factor in effective estate planning. DJC Wealth Management can advise you on a number of options, and will be happy to guide you through what is an extremely complex subject. Those options may include giving annual gifts to loved ones, making donations to charities or community sports clubs and giving away your home to your children, a move that will then increase the allowance threshold on their inheritance tax limits. Pensions and trusts can also be used to reduce tax implications. Here at DJC Wealth Management, we have worked hand in hand with clients from across the globe, helping them to understand the implications of inheritance tax and what they can mean to their families. We feel strongly that this is an issue that should be dealt with long before an individual even reaches the start of his or her retirement years, and to help you protect those you leave behind we can offer a bespoke approach to your individual needs. It’s too easy to put this matter on the back burner and assume you don’t need to make plans just yet – something far too many people have done in the past – but  the sooner you tick this box the sooner you can relax, knowing that you’ve done all you can to minimise the tax burdens of those you love most.

We have an exceptionally knowledgeable team of specialists, and we’re ready and waiting to have a conversation with you about your requirements. The process always starts with a no obligation friendly chat, and as soon as we understand your situation we can provide a clear strategy that will bring peace of mind to you and your family. Please use the online form on our Contact page or call 07449 632 927 to start the ball rolling. We hope you’ll be getting in touch with us very soon.

*The Financial Conduct Authority do not regulate tax and estate planning.