No\nmatter how large or how modest, everyone has an estate and you will want to\ncontrol how it is administered to the people or organisations you care most\nabout. There are lots of points to consider such as making a will, appointing a\nLasting Power of Attorney or creating the right\nTrust to protect your assets and help your beneficiaries. It is\nimportant to plan ahead with confidence in order to minimise the tax burden for\nyour family and loved ones in the future.<\/p>\n\n\n\n
Many people will hold considerable investments and share portfolios that form part of their estate on death. It is possible to transfer some or all of those assets into alternative vehicles that fall outside of your estate after 2 years. You can also retain access to the capital in case you need it. This is achieved by utilising business property relief which results in 100% relief from inheritance tax on the amount invested after a maximum of two years. <\/p>\n\n\n\n
Business owners can gain business relief\nwhich makes their business exempt. However, when the business is sold, the sale\nproceeds are inside their estate for Inheritance Tax and 40% tax beckons. It is\npossible to re-invest into qualifying investments where the previous business\nreliefs are retained. <\/p>\n\n\n\n
If your estate is valued at over \u00a31M, as\nmany increasingly are, then a Inheritance Tax Review is advisable. Here\u2019s\nan example of how it works:<\/p>\n\n\n\n
A couple own a\nhouse worth \u00a3700K. They also have \u2013 <\/p>\n\n\n\n
ISA\u2019s\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a3100K<\/p>\n\n\n\n
Share portfolio\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a3350K<\/p>\n\n\n\n
Buy-To-Let houses \u00a3500K<\/p>\n\n\n\n
Their total estate comes to \u00a31.65M. Assuming they have 2 Nil-rate bands of \u00a3325K each (\u00a3650K) plus a main residence nil-rate band of \u00a3175K each (\u00a3350K), it is possible for most people to pass on \u00a31M of their estate tax free. In this example there is a \u00a3650K excess taxed at 40% so the tax bill would be \u00a3260K. <\/p>\n\n\n\n
If the above\nclients transferred their existing share portfolio of \u00a3350K into an exempt\nasset, it would reduce their Inheritance Tax bill by \u00a3140K<\/strong> and they\nwould still have control of their money, be able to access it at any time and\nreceive a stable return. <\/p>\n\n\n\n More and more\npeople are seeing the increase in house prices pushing their estate values\nhigher and higher. The Government raise billions each year from people sleep\nwalking into higher and higher taxes. It is time to act now.<\/p>\n\n\n\n Call us on 0114 235 3500<\/strong> or email us at advice@hamnettwealth.com<\/a> for a free consultation to find out how we can help you. Our recommendations will take into account all of your investments, retirement and protection strategies so that your estate planning fits your goals.<\/p>\n\n\n\n \n\nYou can read this month’s Westside online at https:\/\/www.rmcmedia.co.uk\/magazines\/westside\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" No matter how large or how modest, everyone has an estate and you will want to control how it is administered to the people or organisations you care most about. There are lots of points to consider such as making a will, appointing a Lasting Power of Attorney or creating the right Trust to protect … Continue reading “Westside Article – October 2020”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-332","post","type-post","status-publish","format-standard","hentry","category-advertorial"],"_links":{"self":[{"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/posts\/332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/comments?post=332"}],"version-history":[{"count":4,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/posts\/332\/revisions"}],"predecessor-version":[{"id":337,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/posts\/332\/revisions\/337"}],"wp:attachment":[{"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/media?parent=332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/categories?post=332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hamnettwealth.com\/news\/wp-json\/wp\/v2\/tags?post=332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}