Your “estate” includes everything that you have of value. That can include everything from your home, car and jewellery to savings and investments.
Estate planning covers:
Inheritance can be an extremely complex and emotive area, but advanced planning and independent financial advice can help your loved ones to get the most out of what you leave behind.
Without proper financial planning, the harsh reality is that HM Revenue & Customs could become the largest beneficiary of your estate following your death.
Inheritance tax is payable if your estate exceeds the nil-rate threshold, which will be fixed at £325,000 until 2021. As of 6 April 2017, each person now gets an additional £100,000 (rising to £175,000 by 2020/21) tax free allowance to use against the value of their home if it is passed to a direct descendant.
Wills, trusts and lasting powers of attorney (LPAs) are the foundation of all inheritance and estate planning as they allow you to effectively plan your financial legacy.
In addition to ensuring that your estate is passed to your chosen beneficiaries in accordance with your wishes, advanced planning can ensure that the people you nominate are able to act in your best interests, both financially and medically, should it ever be required.
Did you know that if you have assets of more than £23,250 (in England and Northern Ireland), £30,000 (Wales) and £26,250 (Scotland) you would not be entitled to financial assistance from your local authority towards your care fees?
Latest figures reveal that the average weekly cost of a room in a residential home in the UK is £621, and a room in a nursing home cost £876.*
As we continue to live longer lives, the cost of long-term care is something we should all be thinking about. Professional financial advice can help you make provisions for your care costs in later life.
