89


HOW TO ENSURE WEALTH STAYS IN THE FAMILY


More than £5 billion went to the taxman in inheritance tax (IHT) in the year up to last May. So how can we get our money to go to our loved ones when we die, rather than the taxman?


We have more wealth to manage House price inflation has meant many people have more wealth than expected to pass on and now it can be a tax that affects most of us. The threshold is £325,000 and tax is charged at 40% on your estate above this.


There is however an extra allowance, the main residence nil-rate band applicable to spouses or civil partners, which for 2018/19 is £125,000, meaning they can inherit your family home up to £450,000 with paying tax on it.


Careful what you do The simple way to keep your estate value below the IHT threshold is to give away surplus funds. However, the taxman has limits to prevent ‘deathbed giving’ as a means of avoiding tax - you need to survive seven years or the sum will be included in your estates value.


However, there are ways of giving away assets that can avoid the taxman’s attention such as your annual gifting allowance of £3,000 each tax year.


Other solutions


Giving away surplus wealth can be one way to ensure it goes to the next generation, but there are other ways to get your money to go where you want.


One is whole of life assurance with the proceeds in trust. On death the payout could be used to take care of the IHT obligations.


Another may be to set up a trust. There are several types and whether or not this approach is right will depend on your circumstances.


IHT can be complicated. The best way to find the answers about passing on your wealth, or any other aspect of estate planning is to talk to an expert. If you would like advice on your estate planning, please contact me.


Investments and pensions can fall as well as rise and you might get back less than you invested. Your home is at risk if you do not keep up the repayments on your mortgage. Tax treatment varies according to individual circumstances and is subject to change.


PROTECTING YOUR FAMILY & YOUR LIFESTYLE


BUYING YOUR HOME INVESTING YOUR WEALTH


PROTECTING YOUR BUSINESS & YOUR EMPLOYEES


SAVING FOR THE FUTURE PLANNING YOUR ESTATE


PLANNING YOUR RETIREMENT & MAINTAINING YOUR RETIREMENT


FOR A FREE INITIAL CONSULTATION CONTACT SIMON PHILLIPS: T: 01803 752 177 M: 07484 095 044 E: simon@mycontinuum.co.uk www.mycontinuum.co.uk Based in Kingswear


Continuum (Financial Services) LLP, Falcon House, Eagle Road, Langage, Plymouth, PL7 5JY T: +44 (0)345 643 0770 E: info@mycontinuum.co.uk www.mycontinuum.co.uk Continuum is a trading name of Continuum (Financial Services) LLP which is an appointed representative of CAERUS Financial Limited.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148