Lifetime transfers

Remember the seven-year rule

An outright gift falls into one of two categories, depending on the type of gift and to whom it’s made. These categories are Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs).

Inheritance Tax Residence Nil-Rate Band

Owning a residence which you leave to direct descendants

The introduction of the ‘residence nil-rate band’ (RNRB) has made it easier for some individuals to pass on the family home. The rise in property prices throughout the UK means that even those with modest assets may exceed the £325,000 ‘nil-rate band’ (NRB) for Inheritance Tax.

 

Passing wealth to the next generation

Making a real difference to the financial position of the recipients

With careful planning it is possible to significantly reduce the need for your estate to pay Inheritance Tax. We spend a lifetime generating wealth and assets but not many of us ensure that it will be passed to the next generation – our children, grandchildren, nieces, nephews, and so on. Estate preservation planning is the transferring of wealth from one family generation to the next.
It’s becoming increasingly important for more people to consider succession planning and intergenerational wealth transfer as part of their estate preservation planning. Increasingly as the baby boomer generation reaches retirement age, we’re on the brink of a vast shift in assets, unlike any that we have seen before.

Strategies and solutions

Provision in place to preserve and protect your assets

Failing to protect family wealth from Inheritance Tax could cost families thousands of pounds. However, there are various strategies and solutions to legally avoid paying this tax.

While some of us may want to spend it while we can, there will be others who want to pass on some of the wealth they’ve worked hard for. For these people, managing any Inheritance Tax liability is paramount, as is making sure the money they leave ends up with the right people at the right time.

Preserving your family’s wealth

Achieving the right balance of control, access, flexibility and tax advantages

Inheritance Tax is a tax on an estate (the property, money and possessions) of someone who’s died. Intergenerational planning helps you put financial measures in place to benefit your children later in life, and even your future grandchildren, but it’s important to start planning early.

You may want to keep an element of control when passing on your assets. You may want your money to be used for a particular reason, such as paying for school or university fees or for a first property deposit. Or you may just want to make sure your money stays within the family.

preserving your family’s wealth