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INHERITANCE TAX PLANNING AND ESTATE PLANNING


D G Financial Services is a firm of independent financial advisers based in Diss. We cover areas from Norfolk to Suffolk and Cambridgeshire to North Essex and specialise in advising on Inheritance Tax and Estate Planning.

Many of your assets, including your home and investments, life insurance plans not in trust, and treasured family keepsakes could be subject to Inheritance Tax (IHT) when you pass away.

GETTING THE RIGHT BALANCE

It is crucial to find out now if you potentially have an Inheritance Tax liability—or could do so in future years. Historically, Inheritance Tax planning was confined to the rich. However, growing affluence means that this is no longer the case. 

Even families and individuals with a relatively moderate level of wealth should consider planning to ensure that their assets are passed on to their loved ones as efficiently as possible. Property price increases have also dragged many middle-class working families into the Inheritance Tax bracket.

Effective estate planning is about getting the right balance between maintaining access to your money when you need it and saving tax. This is because, in general, the more tax-efficient a solution is, the less access you have to your assets. Safeguarding your own financial future is very important, and giving too much away could put this at risk.

INHERITANCE TAX PLANNING ADVICE

Inheritance tax (IHT) is the tax you could pay if you inherit something like a house or other valuable items, and then choose to sell them. It's a subject that can be complex and daunting to navigate. But here at D G Financial Services, we specialise in making it simple and manageable.

UNDERSTANDING AND PAYING INHERITANCE TAX

Inheritance Tax (IHT) is a tax your estate may need to pay after you pass away. It applies if the total value of your assets, like property or money, exceeds £325,000, known as the 'nil-rate band.'

To calculate the potential IHT, you add up all your assets' value, subtract the nil-rate band (£325,000), and the remaining value could be taxed up to 40% by the government.

If your spouse or civil partner passed away before you without using their full nil-rate band, you could use their leftover amount when you die.
Note that tax rates and reliefs can change depending on individual situations.

THE RESIDENCE NIL-RATE BAND

The government has introduced an additional 'residence nil-rate band' because homes often comprise a significant portion of an estate. This band currently stands at £175,000.

If you leave your home to your children or grandchildren, they won't have to pay IHT on the first £500,000 (£325,000 nil-rate band + £175,000 residence nil-rate band) of its value if they sell it.

Married couples or civil partners can combine their nil-rate bands, making the first £1,000,000 of their assets, including property, free from IHT.

However, working out the exact IHT can be complex due to various rules and calculations. But don't worry, we're here to help.

MANAGING INHERITANCE TAX

Proper IHT planning aims to pass as much of your estate as possible to your chosen beneficiaries rather than the government. It's also about keeping flexibility and control over any arrangements made. Remember, tax rates and reliefs can change, and the benefit of any tax relief depends on individual circumstances.

ESTATE PLANNING ADVICE

Estate planning involves organising your assets in a way that could reduce the amount of IHT payable upon your death. This usually involves wills, trusts, life insurance, and other financial tools. For instance, the IHT charge drops from 40% to 36% if you give at least 10% of your estate away to a charity. Our team of experts can provide tailored advice to help you understand the value of your estate, potential tax liabilities, and strategies to minimise these costs.

GIFT PLANNING

Lifetime gifts are another area that could lead to IHT implications. The rules and regulations surrounding gift planning can be intricate and confusing. Our advisers are here to guide you through this process, ensuring you make informed decisions that align with your financial goals.

IHT RETURN FILING

Preparing and filing IHT returns can be a meticulous task requiring a deep understanding of tax laws and regulations. Our team stays abreast of the latest changes in tax legislation, ensuring accuracy and compliance in your return filings.

INTERNATIONAL IHT ADVICE

If you are domiciled in the UK or an overseas resident with UK assets, we can provide advice on managing global assets concerning IHT. 

International tax laws can be intricate, and our team is here to help you navigate them effectively.

ONGOING IHT REVIEW

Both tax laws and personal circumstances can change over time. To ensure your estate planning remains optimal and compliant with current legislation, our ongoing IHT review service keeps track of these changes and adjusts strategies as necessary.

At D G Financial Services, we aim to demystify the world of inheritance tax for you. We aim to provide peace of mind and financial stability for you and your beneficiaries.

WILLS

At D G Financial Services, we cannot stress how important making a Will is, as without one, all decisions relating to your affairs will be made by the state – this includes who looks after your children.

 If you were to die without having made a Will, the surviving spouse will not automatically inherit the estate but only a part of it, even if you were married with children. Furthermore, without taking court action, common law partners would get nothing.

There are so many other factors to consider, even if you have a Will in place. Is it up to date? Has marriage invalidated it? 

If you have children, have you appointed guardians? If the executors are a bank or solicitor, they take part of the estate – is this what you want?

ARRANGE A CONVENIENT VIDEO OR PHONE CONSULTATION WITH US

You can schedule a meeting with an independent financial adviser online or by phone.

Your adviser will contact you to explain their financial advice and answer any questions. If you decide inheritance planning is your solution, they'll guide you through the process of starting it.

The Financial Conduct Authority does not regulate estate planning, trust planning, tax planning and Will writing.

The Financial Conduct Authority does not regulate taxation and trust advice.

Looking for expert independent financial planning and wealth management advice?

The experienced team at D G Financial Services is here to help. We specialise in building your wealth, safeguarding you, your loved ones, and your business, and planning for a secure future. Our independent financial planning services are tailored to fit your unique needs.

Ready to take the next step towards your financial security and independence?

Get in touch with us today, and let's discuss your requirements. We're here to guide you on your financial journey.

Telephone: 01379 454508 or email: info@dgfs.biz

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