Top Estate Planning Tips
As we move through life we gather wealth in a variety of forms, which when we pass away is usually split between family members, friends or designated other beneficiaries. This can include money, property, jewellery, art, vehicles and much more.
Regardless of the size of your estate, you need a plan in place if you want to ensure that the right parties receive the right assets and that they’re protected from inheritance tax. Here are a few tips to help you with estate planning.
Be Specific About Who Receives What
Without clear instructions, your assets will be divided up via the laws that govern your domicile, which means that the people you’d planned to receive your assets may not do so.
Choose How It Should Be Spent
If you have specific plans for your assets, you may need to create a trust so that a trustee can act on your behalf can carry out these provisions. For example, if you’ve allocated a certain amount to your granddaughter for a house deposit, that transfer would be covered by law and so must go ahead.
Minimise Estate and Income Taxes
If your beneficiaries will likely owe estate and income tax on the amounts that they inherit, you might be able to minimise these taxes by using tax-efficient strategies. Furthermore, giving to your beneficiaries while you’re still alive can lessen the amount of tax paid, and a gift is non-taxable if it’s under a certain amount.
Estate and tax planning is a complicated area and you’d benefit from receiving advice from a qualified professional. Get in touch with Choice Retirement if you’d like to know more.