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.

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.

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

The Property (Digital Assets etc) Bill: A Game Changer for Succession Planning

ByTom Stansfield February 2, 2025February 2, 2025

The world of estate planning is evolving, and digital assets are now firmly in the spotlight. With the Property (Digital Assets etc) Bill progressing through Parliament, the way digital assets are handled in Wills and estates could soon change significantly.

This legislation seeks to formally recognise digital assets—including cryptocurrency, NFTs, email accounts, and domain names—as personal property under English and Welsh law. But what does this mean for individuals, executors, and estate planning professionals?

Let’s explore the key implications.

What Are Digital Assets?

Digital assets are non-physical possessions stored or accessed online. These can include:

Cryptocurrency (Bitcoin, Ethereum, etc.)
Non-Fungible Tokens (NFTs)
Email accounts
Social media accounts
Domain names
Digital files and records
In-game digital assets

Until now, the legal status of these assets in estate planning has been unclear, leading to complications when someone passes away. The Property (Digital Assets etc) Bill aims to change that.

Why This Bill Matters for Estate Planning

If implemented, the Bill would officially classify digital assets as personal property, meaning they can be included in Wills and managed like any other estate asset. This development has three major implications:

1. Testators Must Now Consider Digital Assets in Their Wills

Failing to include digital assets in a Will can lead to confusion, disputes, or even complete loss of those assets. Without clear instructions, beneficiaries may struggle to access or claim digital holdings.

✅ What You Should Do:

Take an inventory of all digital assets and their access details
Specify in your Will how you want these assets managed or distributed
Consider appointing an executor with technical knowledge of digital holdings

2. Executors Face New Challenges in Managing Digital Estates

Executors play a crucial role in administering estates, but digital assets present unique challenges, including:

Accessing Accounts: Some platforms have strict security measures, making it difficult to retrieve assets
Valuation Issues: Cryptocurrencies and NFTs are highly volatile, meaning their value can change dramatically
Legal Restrictions: Some platforms prohibit account transfers, limiting how assets can be passed on

✅ How Executors Can Prepare:

Seek training on managing digital assets and blockchain technology
Work with legal and financial advisors to ensure compliance with evolving laws
Use secure methods to document access credentials where appropriate

3. Estate Planning Professionals Must Stay Ahead of the Curve

With the growing popularity of digital assets, estate planning professionals must adapt their advice and strategies to reflect these changes.

✅ Key Considerations for Advisors:

Educate clients on the importance of including digital assets in their estate plans
Stay informed on the latest legal developments regarding digital inheritance
Help executors navigate the technical complexities of digital estate management

What Happens Next?

The Property (Digital Assets etc) Bill has already had its second reading in the House of Lords, indicating progress towards implementation. If passed, it will provide much-needed legal clarity and protection for individuals with digital wealth.

💡 The key takeaway? If you own digital assets, now is the time to review your Will and ensure your estate plan reflects the value of your digital holdings.

At Finawis Advisors, we help individuals and families navigate the complexities of modern estate planning. If you need guidance on how to incorporate digital assets into your Will, get in touch with our team today.

📞 Contact Us to secure your digital legacy.

🔗 Further Reading: Official Gazette

Contact Finawis

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

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.
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.
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.

What Are Digital Assets?

Why This Bill Matters for Estate Planning

1. Testators Must Now Consider Digital Assets in Their Wills

2. Executors Face New Challenges in Managing Digital Estates

3. Estate Planning Professionals Must Stay Ahead of the Curve

What Happens Next?

Similar Posts

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