How am I going to afford long-term care?

Finawis Advisors can help you plan your long-term care and funding you may need to support your later years.

Are trusts tax efficient?

A trust can be a great way to cut down your IHT bill. Our expert advisors can guide you through the process.

Are my heirs subject to any other taxes?

Your heirs may be subjected to Income Tax, Capital Gains Tax and may also get their benefits affected if they have more than £6000 after inheritance.

Is Estate Planning same as Will Planning?

Will Planning is a simple process of documenting your wishes and what happens to your assets in the event of your death. Estate Planning is a more comprehensive process incorporating various documents pertaining to securing and passing of your assets in the most tax efficient way.

How much can I give as gifts each year?

Annual exemption: You can give away a total of £3,000 worth of gifts each tax year without them being added to the value of your estate. This is known as your ‘annual exemption’. Small gift allowance: You can give as many gifts of up to £250 per person as you want each tax year, as long as you have not used another allowance on the same person. Birthday or Christmas gifts you give from your regular income are exempt from Inheritance Tax. Gifts for weddings or civil partnerships: Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership. You can give up to: £5,000 to a child £2,500 to a grandchild or great-grandchild £1,000 to any other person Regular payments/Excess Income Gifting: You can make regular payments to another person, for example to help with their living costs. There’s no limit to how much you can give tax free, as long as: you can afford the payments after meeting your usual living costs you pay from your regular monthly income These are known as ‘normal expenditure out of income’. They can include: paying rent for your child, paying into a savings account for a child under 18, giving financial support to an elderly relative If you’re giving gifts to the same person, you can combine ‘normal expenditure out of income’ with any other allowance, except for the small gift allowance.

Can a life insurance policy cover my Inheritance Tax Bill?

Yes, life insurance policy can cover a part of or your full IHT bill before Probate is granted. It can protect your assets from being sold to pay IHT making things easier for your family. It required special planning. To know more, please contact us.

I have a Will, do I need Estate Planning?

Wills and Estate Planning are often used interchangeably but it’s important to recognize they don’t mean the same thing. Our Estate Planner will work with you to estimate your potential inheritance tax obligations and provide you with tailored advice.

Can I write my own Will?

Yes, you can write your own Will. It should be only done when your wishes are simple like leaving everything to partner. However, you must seek professional advise if you are trying to reduce your Inheritance Tax bill, or own a property abroad, or have foreign investments or bank accounts, or you have people financially dependent on you.

How can I store the Will safely?

Never store your Will in a bank safe deposit neither bank can access it nor can your executer until Probate is granted, and Probate cannot be granted in the absence of Will. We strongly advise that once the Will is made, it should not be kept in home environment as it can get damaged due to theft or loss. You can take advantage of our Secure Storage Facility for a small annual fee. You can access your documents free of charge at any time, upon written request and surrender of your Storage Certificate. We can advise you other options as well. Once you have decided how to store the Will, we recommend informing your executor about its storage and how to access it.

How do I store LPAs safely?

Powers of Attorney are powerful documents. We strongly advise that once the Powers have been signed and registered, you do not keep these legal documents in the home environment, for the following reasons: Storing your documents will ensure that these Powers are NEVER used without your express knowledge and consent, while you have capacity. Prevent your documents from being accidentally damaged or destroyed. Ensure that your documents are never lost or stolen. You can take advantage of our Secure Storage Facility for a small annual fee. You can access your documents free of charge at any time, upon written request.

EstatePlanning

Hmm, How to read a dead person’s mind?

ByPavan Nagori October 24, 2024October 24, 2024

Did the parent (now deceased) intend to give the child the gift and half of the estate or not?

I’m just doing a matter where the law of double portions has become relevant and the Will does not cover. I am willing to bet a significant majority of the Wills (including those drafted by STEP Solicitors) does not cover this! —DOES YOURS? —Partly because it may not be relevant while drafting the Will and very few lay people know about it to account for in their later gifting.

So let’s see what is this all about: The law of double portions is a principle in English inheritance law that applies when a parent makes a gift to a child during their lifetime and then leaves a gift to that child in their will. The principle presumes that the lifetime gift is an advance on the inheritance, and therefore, the child should not receive the same portion twice unless the Will explicitly states otherwise.

Example: The parent’s Will leaves the residue of their estate equally to two children. Let’s say a parent then transfers a property worth £100,000 to one child (or gifts £100,000 to buy their property) during their lifetime. The law of double portions would presume that the lifetime transfer was intended to satisfy the bequest and as per the equitable doctrine of satisfaction, aims to prevent a child from receiving more than what the parent intended.

Did the parent (now deceased) intend to give the child the gift and half of the estate or not?

Inheritance from overseas

If you receive inheritance from overseas (e.g. India), is there UK inheritance tax? NO. In UK, inheritance is not on beneficiaries like in certain European countries like Portugal but on the estate of the deceased. Meaning the tax is charged on the deceased wealth and then post-tax amount is distributed. Hence any tax from overseas…

Read More Inheritance from overseas
Case Study: India and UK Estate Planning Challenges

We recently assisted a client who, at 49, had moved from India to the UK 20 years ago. With properties in both countries and no will in place, the situation became quite complex upon his passing. In the UK, intestacy laws dictated that his spouse received a portion, and the rest was divided among his…

Read More Case Study: India and UK Estate Planning Challenges
Why Transferring Your Home to Your Children Doesn’t Avoid Inheritance Tax

Many homeowners consider transferring the title of their primary residence to their children in an attempt to reduce or eliminate inheritance tax (IHT) liabilities. However, under UK tax law, specifically HMRC’s Gifting with Reservation of Benefit (GROB) rule, such a transfer generally does not provide any inheritance tax benefits. Here’s why: Understanding the Gifting with…

Read More Why Transferring Your Home to Your Children Doesn’t Avoid Inheritance Tax
Pensions – Protected from taxes? Think again!

Do you have rental or other income? Are you likely to use all your pension in your lifetime? NO, The good news is that there no Inheritance tax on pensions. Hence, you should use your assets before dipping into your pension. HOWEVER, if you die after 75 years of age as most of us will,…

Read More Pensions – Protected from taxes? Think again!
Banks need to catch up with the world

The population is aging and Dementia/Alzheimer’s is on the rise. People are getting ready for it by executing Lasting Power of Attorney and appointing their trusted friends/family to make decisions on their behalf if they are no longer able to make them. However the banks are not equipped to handle these requests. As reported by…

Read More Banks need to catch up with the world
Inheritance Tax (IHT) – Chancellor’s next target?

Reports suggest Chancellor Rachel Reeves is looking at targeting inheritance tax in the Autumn Budget as a way of raising revenues while avoiding a breach of her fiscal rules (fiscal gap of £40–50bn). In practice, there are a number of changes she could introduce — but it remains questionable whether they would make any meaningful…

Read More Inheritance Tax (IHT) – Chancellor’s next target?

How am I going to afford long-term care?
Finawis Advisors can help you plan your long-term care and funding you may need to support your later years.
Are trusts tax efficient?
A trust can be a great way to cut down your IHT bill. Our expert advisors can guide you through the process.
Are my heirs subject to any other taxes?
Your heirs may be subjected to Income Tax, Capital Gains Tax and may also get their benefits affected if they have more than £6000 after inheritance.
Is Estate Planning same as Will Planning?
Will Planning is a simple process of documenting your wishes and what happens to your assets in the event of your death.

Estate Planning is a more comprehensive process incorporating various documents pertaining to securing and passing of your assets in the most tax efficient way.
How much can I give as gifts each year?
Annual exemption: You can give away a total of £3,000 worth of gifts each tax year without them being added to the value of your estate. This is known as your ‘annual exemption’.

Small gift allowance: You can give as many gifts of up to £250 per person as you want each tax year, as long as you have not used another allowance on the same person. Birthday or Christmas gifts you give from your regular income are exempt from Inheritance Tax.

Gifts for weddings or civil partnerships: Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership. You can give up to:

£5,000 to a child

£2,500 to a grandchild or great-grandchild

£1,000 to any other person

Regular payments/Excess Income Gifting: You can make regular payments to another person, for example to help with their living costs. There’s no limit to how much you can give tax free, as long as:
- you can afford the payments after meeting your usual living costs
- you pay from your regular monthly income
These are known as ‘normal expenditure out of income’. They can include: paying rent for your child, paying into a savings account for a child under 18, giving financial support to an elderly relative

If you’re giving gifts to the same person, you can combine ‘normal expenditure out of income’ with any other allowance, except for the small gift allowance.
Can a life insurance policy cover my Inheritance Tax Bill?
Yes, life insurance policy can cover a part of or your full IHT bill before Probate is granted. It can protect your assets from being sold to pay IHT making things easier for your family. It required special planning. To know more, please contact us.
I have a Will, do I need Estate Planning?
Wills and Estate Planning are often used interchangeably but it’s important to recognize they don’t mean the same thing.

Our Estate Planner will work with you to estimate your potential inheritance tax obligations and provide you with tailored advice.
Can I write my own Will?
Yes, you can write your own Will. It should be only done when your wishes are simple like leaving everything to partner.

However, you must seek professional advise if you are trying to reduce your Inheritance Tax bill, or own a property abroad, or have foreign investments or bank accounts, or you have people financially dependent on you.
How can I store the Will safely?
Never store your Will in a bank safe deposit neither bank can access it nor can your executer until Probate is granted, and Probate cannot be granted in the absence of Will.

We strongly advise that once the Will is made, it should not be kept in home environment as it can get damaged due to theft or loss.

You can take advantage of our Secure Storage Facility for a small annual fee. You can access your documents free of charge at any time, upon written request and surrender of your Storage Certificate. We can advise you other options as well.

Once you have decided how to store the Will, we recommend informing your executor about its storage and how to access it.
How do I store LPAs safely?
Powers of Attorney are powerful documents. We strongly advise that once the Powers have been signed and registered, you do not keep these legal documents in the home environment, for the following reasons:
1. Storing your documents will ensure that these Powers are NEVER used without your express knowledge and consent, while you have capacity.
1. Prevent your documents from being accidentally damaged or destroyed.
1. Ensure that your documents are never lost or stolen.
You can take advantage of our Secure Storage Facility for a small annual fee. You can access your documents free of charge at any time, upon written request.

Similar Posts

PROFESSIONAL AFFILIATIONS

Follow us on: