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.

Critical Illness / Sickness Cover:

This is a key gap in your protection plan, whilst you have quite a quite a bit of life cover (perhaps more than required), The likelihood of having a period of sickness or having a more critical illness is significantly more in today’s world. For example, the UK statistics are that one in 2 will get cancer. If you have a heart attack, cancer, stroke or any other series in this not necessarily critical, then you may not be able to work, and hence, your income will be impacted given your freelancer. It may take several months to recover from these illnesses, and having a cover will give you peace of mind and allow you to focus on rehabilitation without the stress of providing for the family and expenses.

Income Protection Insurance and Critical Illness Cover are both designed to provide financial support if you face health-related issues, but they serve different purposes and function in distinct ways. Here’s a breakdown of their differences and when you might choose each:

Income Protection Insurance

Purpose:
Provides a regular income if you’re unable to work due to illness or injury.
Payout:
- Paid as a monthly income, usually a percentage of your pre-illness earnings (e.g., 50%-70% of your salary).
- Payments continue until you recover, return to work, reach retirement age, or the policy term ends.
Conditions Covered:
Covers a wide range of illnesses and injuries, not limited to specific conditions. The focus is on whether you’re medically unable to perform your job.
Flexibility:
You can usually tailor the policy, choosing the waiting period (time before payments start) and the length of the payout.
Best For:
- People who rely heavily on their income to meet ongoing expenses (e.g., rent, mortgage, bills).
- Those seeking long-term support for temporary or long-term disabilities.
- Choose this if your primary concern is maintaining your lifestyle and covering everyday expenses if you can’t work for an extended period.
- Ideal for individuals who want ongoing financial support for long-term or recurring illnesses.

Critical Illness Cover

Purpose:
Pays a lump sum if you’re diagnosed with a serious, specified medical condition.
Payout:
- A one-time lump sum payment.
- The payout is predetermined and not tied to your income.
Conditions Covered:
Covers specific illnesses like cancer, heart attack, stroke, or other severe medical conditions listed in the policy. Some policies may have exclusions or different coverage levels for less severe conditions.
Flexibility:
The payout is yours to use as needed — to pay off debts, cover medical expenses, or make lifestyle adjustments.
Best For:
- People who want financial assistance after being diagnosed with a critical condition.
- Those looking to clear financial obligations like loans or paying for specialised care / adaptions to the house

Combining Both

Many people choose to combine these policies for comprehensive coverage:

Income Protection ensures your regular expenses are covered if you can’t work.
Critical Illness Cover provides a financial cushion for dealing with the immediate impact of a major diagnosis.

Get in touch to discuss your cover

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