Inheritance tax planning – protecting your and your family from avoidable taxes. 

Having paid tax throughout our lives, on our death most of us would like the wealth we have accumulated to pass to those closest to us without further tax being paid. 

However, if through careful planning, prudence and maybe even an element of good fortune you have accumulated assets worth more than £325,000, Inheritance Tax (IHT) may be payable on the excess, at a rate of 40%. 

As a result, for many, the immediate focus of their estate planning is often to reduce their potential IHT liability. However, as part of this exercise, it is equally important to consider the impact IHT could have on a second or third occasion as wealth passes from, say, children to grandchild and then on to their children.

If IHT was paid on the transfer of assets between just three generations, the effective rate of tax could be as high as 64%. As assets pass to subsequent generations, this figure could rise further. 

Care fees and funding in later life

The need for long-term care is a growing issue for many people in the UK and, as life expectancy continues to lengthen, it is something that an ever-increasing proportion of the population will need to address. Speak to our experts around how you can plan for this tricky and potentially expensive time in life. 

Helping your children with their future finances

The financial challenges facing younger generations are all too apparent. They need help. What was once a nice thing to do is increasingly becoming a necessity. Whether it’s university fees or getting on the housing ladder, families recognise the need to give their children a helping hand towards a more secure financial future. 

The key is to start early. Saving into a Junior ISA, or a child’s pension, are great ways to give them a head start. And there is also a multi-generational aspect to this planning. Gifting, loans and providing security to mortgage providers are also solutions that parents and grandparents can consider. Many of these have the added advantage of helping with effective estate planning. Helping secure the finances of our loved ones is a very worthwhile and realistic aspiration; but advice is important to ensure that the right plans are put in place and the tax consequences are understood. 

The home on which the mortgage is secured may be repossessed if repayments are not maintained.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and can fall as well as rise. You may get back less than you invested. 

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.