Wills & Probate

Writing a Will

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Statistics show that 22% of adults aged 75 years and above have no will, along with 39% aged between 65 and 74.

Having a Will in place is essential to ensure your estate is passed down to who you want it to. If you would like more information and guidance on making a Will, please get in touch.

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Wills and Inheritance Tax

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Wealth transfer has become an important issue for many families today. Individuals with assets of any size should prepare for their eventual transfer whilst making provision for any tax or legal consequences.

But more than half of parents (57%) haven’t spoken to their adult children about their Will, according to new research[1]. Nearly a quarter (24%) of adults haven’t discussed making a Will with their partner or spouse, while almost a third (31%) were unsure if they understood the long-term benefits of putting their assets into a trust or finalising a Will.

Long-term finances

The survey also revealed one in two (49%) adults admit that talking about long-term finances, especially in the event of death, with family members is difficult. When it comes to discussing Wills and trusts with adult children or dependents, over two-thirds (69%) of parents say they feel responsible for the financial wellbeing of their children if they were to pass away.

Despite this, 57% admitted they haven’t talked to their children about long-term finances, while nearly one in ten (9%) parents said they weren’t sure how to approach the topic. The survey finds 47% of people have their children down as a beneficiary of their Will – higher than other forms of support, such as a deposit for a house or flat (19%), a savings pot with regular contributions (16%), or covering the cost of transport, such as a car (15%).

Minimal Inheritance Tax

Parents and guardians should make formal arrangements so that, upon their death, the appropriate plans are in place to ensure the people they wish to benefit from their estate will do so, with the estate settled as quickly as possible and with minimal Inheritance Tax.

If there is no Will, the deceased’s estate will be distributed under the terms of law, which may not align with their loved one’s wishes. Receiving the right professional advice and setting up a financial plan can ensure you are best able to look after your family when the time comes.

Giving peace of mind

With so many different options, it can be overwhelming. The research found that two-thirds of adults (69%) understand the long-term benefits of finalising trusts and Wills, but that still leaves many who don’t.

It’s important to have plans in place to protect your assets and loved ones, today and in the future. It might be difficult to think about, but it ensures your wishes will be met, giving you peace of mind. The outcome of not having a Will or trust in place can be costly – so knowing the difference between Wills and trusts, and putting them in place appropriately, can provide vital benefits.

Wealth and assets

When looking to leave assets to family members, Inheritance Tax is a key consideration. Effective estate planning can help in ensuring your wealth and assets go to your loved ones. By setting up a trust you can effectively put the money outside of your estate, which could be efficient for Inheritance Tax purposes.

Assets held within a trust do not usually form part of your estate upon death, provided that you live for seven years after placing the assets into trust. Therefore, it’s likely they won’t be liable to Inheritance Tax.

Understanding the options

Effective estate preservation planning could save a family a potential Inheritance Tax bill amounting to hundreds of thousands of pounds. Inheritance Tax planning has become more important than ever, following the government’s decision to freeze the £325,000 lifetime exemption until April 2028, with inflation eroding its value every year and subjecting more families to Inheritance Tax.

Over half of Britons (57%) believe it’s important to seek financial advice when it comes to long-term financial planning, which is absolutely right. Seeking advice from a professional ensures you fully understand the options available, and recommendations are made in line with your requirements, giving you peace of mind.

Inheritance tax planning services

Are you looking to pass on more of your wealth in the most tax-efficient way? We all have different objectives in life and need different strategies to help achieve them. We can help you build a strategy that provides financial support to your family and helps you pass on more of your wealth in the most tax-efficient way – please get in touch with us for more information on our estate planning and inheritance tax planning services.

Source data: [1] The research was conducted by Opinium Research and surveyed 2,000 UK adults between September 5-13, 2022.

Important Information: Inheritance Tax planning is a highly complex area of financial planning. Information provided and any opinions expressed are for general guidance only and not personal to your circumstances, nor are intended to provide specific advice. Professional financial advice should be obtained before taking any action. Inheritance Tax planning is a highly complex area of financial planning. The financial conduct authority does not regulate Inheritance Tax planning.

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Property Protection Trusts

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You can establish a trust during your lifetime 0r; through your will, on your death. You can appoint trustees of your choice (this can include you and your spouse during your lifetimes) who will manage the trust on your behalf. Following your death, the trustees will act with consideration to your wishes.

Trusts offer several benefits:

  • On your death, the trust asset can pass to your chosen beneficiaries with no need for probate
  • In certain circumstances, trusts can protect your assets from creditors
  • You can control who benefits from your assets during your lifetime and on your death
  • Depending on how the trust is structured, it is possible to invest your assets into a trust to mitigate inheritance tax, income tax, and capital gains tax (principle private residence relief)
  • Protect your estate against potential future care fees

You may also wish to reserve some influence over your assets for the trustees to observe after your death.

For example:

  • You may want to delay the age at which beneficiaries inherit
  • You may want your heirs to receive their inheritance in stages
  • You may be concerned about your heirs getting divorced and want to protect the assets inherited from you being included in a divorce settlement

Trusts can also be useful in preventing assets reaching a beneficiary facing insolvency proceedings and those making poor lifestyle choices, such as involvement in alcohol and drugs.

Property Protection Trust

Owning your home as tenants in common rather than joint tenants provide additional planning opportunities. This can potentially protect inheritance in terms of residential care fee assessment and marriage following bereavement.

A property protection trust is put in place so that the half share of the family home belonging to the first person to die passes into the trust (also known as a life interest trust). This allows the surviving spouse to benefit from the share of the house during their lifetime. Following the surviving spouse’s death, the property can then be passed on to either children or loved ones. By putting this trust in place, you are ensuring your assets are going exactly where you want them to go and giving you total peace of mind.

The benefits of a property protection trust are:

  • Each spouse now owns 50% of the property
  • Each spouse grants the surviving spouse a ‘right to reside’
  • Allows you to pass your property to your chosen beneficiaries
  • Each spouse can gift their 50% as they see fit: (both halves of the property do not have to go to the same beneficiaries)
  • Allows you to nominate your chosen Executo1·s/ Trustees to handle the property on your behalf
  • Can be used as a tool for planning for care home fees

Please be aware that should the survivor remarry, not make a new will and then die, intestacy rules would see the new spouse taking a disproportionate amount of the estate. By severing the tenancy and creating a life interest trust in your wills (for the surviving spouse), this means your assets are going exactly where you want them to go and giving you total peace of mind. To preserve the residential nil rate band, property needs to pass to direct descendants.

Get in touch

For more guidance on the benefits of setting up a property protection trust and for more information on our inheritance tax planning services, please get in touch with us.

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Checklist for Protecting your Family’s Finances

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Checklist for Protecting your Family’s Finances

Create an estate plan

Estate planning isn’t only for the wealthy. There are various ways you can minimise Inheritance Tax like gifting or utilising pensions and trusts.

Protect against illness and death

We can help select the right products for you and your family’s needs.

Write or review your Will

Ensure your money and assets go to the people and causes you care about.

Get in touch

For more information on our inheritance tax planning services, please get in touch.

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Tax Planning Services

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Head of Estate Planning and Chartered Financial Planner, Mark Chandler, outlines our tax planning services including making a Will, trusts and probate.

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Financial Protection Planning

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Financial Protection

No ‘one-size-fits-all’ protection solution

Everyone should review their financial protection and estate plans. A solid plan will help you feel confident your family’s finances are secure.

The uncertainty of the past couple of years has shown how important it is to have a robust plan in place for securing your family’s finances. While no one knows what is around the corner, reviewing your protection, updating your Will and creating an estate plan will help you rest assured that the financial side of things is taken care of.

These are some of the main considerations:

Protect against illness and death

It is essential to make sure that you have adequate protection in place, depending on your particular circumstance. There is no ‘one-size-fits-all’ protection solution so receiving professional advice is important when considering the right products for you and your family’s needs. This will ensure that your finances remain secure if illness or death happens unexpectedly, giving peace of mind to you and your loved ones at what could otherwise be a difficult time.

A life insurance policy is one of the most important types of protection to have in place. It pays out a lump sum if you die during the duration of the policy, helping your family to pay o% their debts, maintain their lifestyle or cover any other expenses they may have.

Critical illness cover can also provide valuable financial protection in case you are diagnosed with a specified serious illness while your policy is active. This type of cover will pay out a tax-free lump sum if you are diagnosed with an eligible condition, allowing you to concentrate on getting better without having to worry about bills piling up.

Income protection is also worth considering when developing your financial plan. This type of cover provides regular payments should you become ill or injured and are unable to work. This can help you cover your regular outgoings, such as mortgage payments or rent, while you recover.

Write or review your Will

Writing or reviewing your Will is essential for making sure that your wishes are respected and carried out after you pass away. It ensures that your money and other assets go to the people and causes you care about, such as relatives, family friends, charitable organisations, etc. Additionally, it provides you with the opportunity to appoint guardians for any children in your life, so they can be looked after by people you
know and trust.

If you don’t have a Will in place when death occurs, then the rules of intestacy will be applied to distribute your assets and possessions according to legal guidelines. These might not always align with what you would have wanted. Therefore, it is important to obtain professional advice on how best to proceed with making a professional Will. Doing so can help to ensure that your wishes are appropriately recorded and respected, even after you’ve gone. With the right professional advice and guidance, making a Will or reviewing your Will provides peace of mind that comes with having your affairs in order.

Create an estate plan

Creating an estate plan is a step that can make a significant impact on the financial futures of your children and grandchildren. Despite common misconceptions, estate planning isn’t only for the wealthy. In fact, due to rising house prices and the freezing of the Inheritance Tax (IHT) nil-rate band until April 2028, IHT could now be more impactful than before.

Fortunately, there are various ways in which you can minimise this unexpected burden, ranging from making lifetime gifts to utilising pensions and trusts. To get the most out of these options, it’s best to seek professional financial advice. We can help guide you as you build a comprehensive estate plan tailored specifically to your needs, to ensure that your family is well-protected and their financial futures are secured.

Being prepared for whatever the future may bring

In uncertain times, receiving professional advice can help you feel confident you’re doing everything you can to secure your family’s
finances. We will look at your personal, family and financial circumstances to recommend the right solutions for your individual needs. You can focus on enjoying life today, safe in the knowledge that you’re prepared for whatever the future may bring. To find out more about our financial planning services or inheritance tax planning services, please contact us.

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Inheritance Tax Receipts Reach £6.1 bn

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Inheritance tax receipts reach £6.1 bn. What if I could make my wealth more tax-efficient?

We all want to leave a legacy and make sure the ones we care about most are well taken care of when we’re gone. That’s why Inheritance Tax planning is so important, to have confidence that your children, grandchildren and those you hold dearest will be taken care of long into the future.

Inheritance Tax is a tax on the estate of someone who has passed away. The standard Inheritance Tax rate is 40% in the current 2022/23 tax year. Your estate consists of everything you own. This includes savings, investments, property, life insurance payouts (not written in an appropriate trust) and personal possessions. Your debts and liabilities are then subtracted from the total value of your assets.

Passing on your main residence to direct relatives

Every person in the UK currently has an Inheritance Tax allowance of £325,000 (frozen until April 2026). This is known as the nil-rate band (NRB). In 2017, an extra allowance was introduced to make it easier to pass on your main residence to direct relatives (i.e. a child or grandchild) without incurring Inheritance Tax. This allowance is currently £175,000, known as the residence nil-rate band (RNRB), and is on top of the standard nil-rate band of £325,000.

A tapered withdrawal applies to the RNRB when the overall value of an estate exceeds £2 million. The withdrawal rate is £1 for every £2 over the £2 million threshold.

Allowed to use both tax-free allowances

If you are married or in a registered civil partnership, you are allowed to pass on your assets to your partner Inheritance Tax-free in most cases. The surviving partner is then allowed to use both tax-free allowances. Provided the first person to pass away leaves all of their assets to their surviving spouse, the surviving spouse will have an Inheritance Tax allowance of £650,000 (£1 million if they are eligible for the RNRB).

According to recent figures released by HM Revenue & Customs (HMRC), more estates in the UK are now paying Inheritance Tax than ever before[1].

Paying Inheritance Tax unexpectedly

Inheritance Tax receipts totalled £6.1 billion in the 2021/2022 tax year, up £729 million on the year prior. This 14% increase marks the largest single-year rise in Inheritance Tax receipts since the 2015/2016 tax year. The increase is the result of the ongoing freeze on the nil-rate Inheritance Tax band and residence nil-rate Inheritance Tax band.

Many more families are finding the total value of their estate – driven by a rapid growth in house prices, savings and other assets – is likely to be above £1million at the point of death, meaning many more estates could end up having to pay Inheritance Tax unexpectedly

Start conversation with your loved ones

In the 2019/20 tax year, there were 23,000 such deaths, up 4% on the year prior[1]. Given this data only covers to the start of the pandemic, this number is likely to have risen considerably over the past couple of years as asset prices grew.

With many more estates likely to be subject to an Inheritance Tax bill, it remains important that you have a conversation with your loved ones sooner rather than later so that you all fully understand your estate, the value of it and the potential to pay an Inheritance Tax bill.

Save your family thousands of pounds

When discussing your Will and any potential Inheritance Tax liability, there are things that can be put into place to mitigate or reduce a future payment.

That’s why planning for Inheritance Tax is a fundamental part of financial planning. It could potentially save your family thousands of pounds in Inheritance Tax payments when you die and ensure that your wealth is preserved for future generations.

What will your legacy look like?

We understand every situation is unique. We’ll help you to identify any specific issues and recommend the changes needed to help you meet your long-term wealth protection goals in the most tax-efficient manner. To find out more, please speak to us.

Source data: [1] https://www.gov.uk/government/statistics/inheritance-tax-statistics-commentary/inheritancetax-statistics-commentary

The Financial Conduct Authority does not regulate taxation and trust advice and will writing. Trusts are a highly complex area of financial planning. Information provided and any opinions expressed are for general guidance only and not personal to your circumstances, nor are intended to provide specific advice. Tax laws are subject to change and taxation will vary depending on individual circumstances.

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Making a Will Checklist

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Information to get started

  • Basic information about your loved ones
  • A general sense of your assets and debts

People to talk to

  • Executor(s)
  • Guardian(s)

Questions to ask yourself when making a Will

  • Who will raise your children?
  • Who will carry out your final wishes?
  • Do you want to gift specific people?
  • Who will care for your pets?
  • How do you want to distribute your assets?
  • Do you want to give money to charity?
  • Who will get your digital assets?
  • When can minor beneficiaries access their inheritance?
  • If any of your beneficiaries die, how should their inheritance be split?
  • What is your plan for the worse case scenario?
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Where There’s a Will There’s a Gen Zer

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Making a Will and Gen ZersMaking a Will: 20% of 18-24-year-olds emerge as Will makers

As many as a fifth (20%) of young Gen Z adults aged 18 to 24 say they have already made a Will[1]. Getting their affairs in order at such an early age compares favourably relative to the UK adult population overall, where just four in ten (40%) people have made a Will.

It would appear that Gen Z is also ahead of the game as just 21% of their Generation Y contemporaries (those aged between 25 and 40), and 32% of Generation X (those aged between 41 and 56) have made a Will.

Silent Generation

Unsurprisingly, it’s the older generations that lead the way as these age groups are likely to have gone through life changes warranting estate planning, such as starting a family, buying property, caring for older family or planning their own retirement. Among the Silent generation (75+ years old), 82% have a will, as do 65% of UK Baby Boomers (57 to 75 years old).

While it may be an uncomfortable subject to think about, making a Will is an important part of financial wellbeing and planning for the future. It can provide peace of mind that loved ones are supported after you die, and also helps ensure your assets are dealt with in the way that you want. It’s promising that so many young people have already put a Will in place and are mindful of the long financial journey they have ahead.

Circumstances change

Irrespective of your life stage, making a Will at any age is important to help improve your financial wellbeing. As you move through life,
circumstances change, as do the potential risks and complications when you pass away, so it’s wise to update or create a new Will after big life moments such as getting married, starting a family or buying a new property. And, if you are saving into a pension remember to update your beneficiary nomination too, as they’re not covered by the rules governing Wills.

The research also found that men and higher earners are more likely to have their affairs in order. More than two-fifths (44%) have a Will, compared to 37% of females. 61% of those earning £70k+ per year and half (54%) of those earning between £40k and £70k have a Will, compared to just 35% of those earning less than £20k, and 41% of those earning between £20k and £40k.

Financial pressures

Surprisingly, also highlighted in the research was the fact that that the pandemic has not necessarily driven people to create a Will, with just 4% of those whose financial plans or approach to savings have been impacted by COVID making a Will.

Two-thirds (65%) of Gen Z adults want to be able to leave an inheritance, although many are conscious of the financial pressures they may
face later in life that could hinder their ability to pass on assets. A quarter (25%) already expect to be paying for long-term care for a loved one in retirement, and 25% also expect to help their parents/in-laws financially.

It’s good to talk

When it comes to your future, putting in place the right plan is essential for your future wellbeing. To discuss how we could help you in making a Will, please contact us for more information.

Source data:
[1] Boxclever conducted research among 4,896 UK adults. The research is nationally representative of UK adult population in terms of age, gender, region, with 578 people falling into Generation Z. Quantitative fieldwork was conducted between 16–23 July 2021. Qualitative fieldwork was conducted between 3%11 August 2021.

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Inheritance Tax & Will Planning

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Estate planning is about more than just tax. It is about making sure the people left behind are financially supported, that your assets are protected and that the tax your estate pays is fair.

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