Inheritance Tax

  • Aretha Franklin: The ‘Queen of Soul’ who died without making a will

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    On 16 August, Aretha Franklin passed away, aged 76, in hospice care after battling pancreatic cancer. She didn’t leave a will. This leaves her four sons and other family members to work out her total assets and divide them amongst themselves. After the mourning process, the practical concerns around a death take hold. When someone dies without a wi...
  • Can we make inheritance tax simpler?

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    Inheritance tax (IHT) has existed in the UK for over 300 years. In its current form, it was brought in to replace the old Capital Transfer Tax; a measure that was brought in itself as a form of wealth distribution in order to regulate disparity between rich and poor. Although in concept the idea is quite simple, in reality, the caveats and bureaucr...
  • Talking about your will – don’t be one of the 93%

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    A national saving and investment survey has shown only 7% of people have spoken to their parents about inheritance. One of the most important parts of planning to leave an inheritance is to talk about it. This is obviously not an easy topic and it may be a good idea to set aside some specific family time to have this discussion. This could help av...
  • 5 key financial changes to watch out for in 2018

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    As with any new year, there are a number of financial changes coming up in 2018 which are likely to impact on your monthly budget and long-term saving goals. Let’s have a look at five of the most significant and what they’re likely to mean for you over the next twelve months. Automatic enrolment contributions are set to increase – If you’re enroll...
  • Millennials on target to enjoy inheritance boom but not until they’re 61

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    A recent report has revealed that millennials are set to benefit from an ‘inheritance boom’ bigger than that experienced by any other generation in the post-war period. The Resolution Foundation, the think-tank which carried out the research, defined millennials as people currently aged between 17 and 35, and found that those within this age bracke...
  • The case for inheritance tax – for and against

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    Jean-Baptiste Colbert, France’s celebrated 17th century finance minister under King Louis XIV, famously said the following: “The art of taxation consists in so plucking the goose as to procure the largest quantity of feathers with the least possible amount of hissing.” Or, to put it more bluntly, a successful tax should earn the government plenty o...
  • How to pass on ISAs after you’re gone

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    ISAs have long been regarded as a simple and effective way of protecting your savings from the taxman, with the increased limit now allowing you to shelter up to £20,000 of your savings a year from being taxed. Whilst this can be a great help in protecting your nest egg during your own life, you’ll also want to know that your hard-earned savings wi...
  • Is the probate fee rise the ‘new inheritance tax’?

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    When someone dies and leaves a will, an executor is usually appointed in the will to deal with the deceased person’s estate – their money, property and possessions. Before they’re able to do this however, the executor has to apply for a ‘grant of probate’. This means they are legally allowed to distribute assets from the estate as outlined in the w...
  • Inheritance tax: the recent changes you need to know about as you plan

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    The changes to inheritance tax that were introduced in the 2015 Budget will soon come into effect, with some becoming the law as early as April 2017. With less than a year to prepare for these changes, it’s important to ensure you know what to expect and that you’re doing everything you need to in order to ensure you aren’t caught out. The biggest...
  • A timely reminder about the importance of making a will, from Lesley Stevens

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    So what happens if I die without a Will in place? Figures show that over 50% of adults with children in the US and UK do not have a Will in place. You are said to have died 'intestate'. If you die intestate the results could be catastrophic for your family. Should this happen, the state sets out who should deal with your affairs and who should inhe...
  • Pension Death Benefits - The New Rules

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    Major changes to the tax charges that apply to benefits paid on the death of a pension scheme member have taken effect from 6 April 2015. These changes affect uncrystallised pensions, drawdown pensions and annuities. Under the new rules the key factor is the age at which a member dies. OPTIONS AND TAXATION Member’s age at date of death & Optio...
  • Planning for a better financial future in retirement

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    Recent HSBC research identified four broad actions which may help today’s retirement savers to create an informal plan and work towards a better financial future for themselves. 1. Be realistic about your retirement aspirations The research indicates that more than half of retirees (53%) have been unable to realise at least one of their hopes and a...
  • Pensions and ISAs compared – how can you decide which is best?

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    According to HMRC, 45% of savers in stocks and shares ISAs are aged 55 or over. These savers already understand the mantra of ‘gross is good’ and have chosen an investment on which there’s no additional tax due on investment growth and income. What many investors seem to be unaware of is that the exact same tax treatment is available on funds held...
  • Ten questions to ask yourself about the new pension freedoms

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    1 – How long will my money have to last? We now tend to live longer. An average 65 year old in good health is expected to live for another 24 years and one in four people could now live to see their 95th birthday. Our retirement savings are going to have to last us for a long time – perhaps 30 years or more. Leaving them where they are for longer c...
  • 10 New Year’s Resolutions for your Financial Planning

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    With recent reports from the Autumn Statement suggesting most of the UK economic indicators are moving in the right direction, it doesn’t mean we can suddenly afford to ignore our personal financial planning. So in the best traditions of New Year here are ten financial planning resolutions that will hopefully help make 2015 a prosperous and secure...
  • Two weeks on: the other outcomes from the Autumn Statement

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    Many clients will have already seen our Autumn Statement Summary, which analyses in detail the main points from The Chancellor’s Autumn Statement, made on 3rd December. Like many major government announcements though, the real headlines and many of the outcomes from the statement only became clear in the weeks after George Osborne stood in parliame...
  • Video: What happens to my pension when I die?

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    With the Chancellor’s recent announcement that the government plans to abolish the 55% so-called ‘death tax’ on pensions, we thought it was important to provide a bit more background about what happens to the legacy you leave behind. In the below video, we explore the death tax cut and why inheritance planning is so important. https://www.youtube...
  • Video: Explaining Inheritance Tax

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    When it comes to passing on your estate to your family, did you know that anything over the current limit of £325,000 is subject to a 40% Inheritance Tax? That might sound like a large number but with rising property prices and a recovering economy, more people than ever are being caught out. In the video below, we explain what Inheritance Tax can...
  • New flexible pensions: why we will not be spending them all at once…

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    Much has been written about the new dawn of pensions flexibility ushered in by the Chancellor in his last budget. Amidst the thunderous applause and cries of ‘long overdue!’ from most pension holders there were, however, stern noises from certain quarters – Labour’s Ed Balls among them – that the overwhelming temptation for many would be to rush ou...
  • 7 Alternatives to using pensions to save for retirement

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    Faced with a hefty 55 per cent pensions tax bill because of HM Revenue & Customs new lower lifetime pensions allowance, many middle-to-high earners with generous pension arrangements are seriously on the lookout for alternatives to pensions as savings vehicles for retirement. That is quite a few savers potentially hunting around, considering th...
  • Top 5 financial questions to ask before moving abroad

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    The decision to move abroad is probably one of the most exciting you will ever make, but it will come as no surprise to learn that there is plenty to sort out before you leave, not least of all when it comes to your finances. It is common to have questions about the processes involved, even if you have already made the decision to move and so, belo...
  • ISAs: Now much NISA

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    Virtually all the headlines surrounding George Osborne’s recent Budget were about the changes to the pensions rules. Rightly described as the biggest changes to pensions legislation for a hundred years, they will have far-reaching implications for the financial planning of many of our clients. With all the attention devoted to pensions, it was easy...