Putting Back “We” Into Wealth
Do you know that every year more and more family are paying IHT, the inheritance tax, after the death of a loved one? There are many reasons for this tax threshold, but ultimately whether it’s the inflated house prices in the UK or the lack of family allowance, the result is the same for everyone. There’s no “we” in wealth. When you die, your family may not be able to profit from your wealth if you haven’t planned things appropriately. Don’t be fooled into thinking that the inheritance tax only targets rich families. Wealth is too often inadequately transferred between family members after the death of a relative, whether it’s your home, your stock investments, or even your savings. Besides, more often than not, the family is faced with dealing with the debts that have been left open with your departure. So, it’s time to think of your loved ones and to make them part of your wealth management plans.
Don’t be selfish, think of your responsibilities towards your family
As you grow older, it’s essential to make sure that you’re leaving a clean slate for your family. Indeed, money management becomes an essential skill as you’re planning for old age. First of all, you might want to make things easier for your family by planning your funeral and ensuring that you’ve secured financing options so that they don’t have to worry when the time comes. But more importantly, clearing out your debts is the best thing you can do for your loved ones. When you die, your debts are passed onto your relatives, and there’s nothing worse than having to deal with the loss of a family member and financial troubles at the same time.
Define goals that work for you and your relatives
Getting rid of your debts is one thing. But leaving something behind is a different kettle of fish. You might need the advice of wealth management experts such as Partridge Muir & Warren, to guide you through the different investment options. Indeed, while property investments can be subject to the IHT tax, there are other ways to ensure that you can share your wealth with your relatives. Additionally, you can rely on expert knowledge to find out the best investment strategy for your situation; your budget and your needs. Ultimately without a dedicated wealth manager, you’ll find it difficult to make the most of financial and fiscal legislation.
What happens if you don’t plan for your succession
You may not want to think about it, but when you die, your money, your possessions and your property will be shared out. If you don’t leave a will, the law will manage the process, which means that someone you wanted to pass things on might end up with nothing. A will can ensure that your belongings are shared accordingly to your intention, regardless of whether the persons were your relatives, friends or even part of a charitable organisation. Consequently, you can help to protect your loved ones from unnecessary distress and legal procedures.
Without appropriate planning, your wealth might die with you. It’s essential to think ahead and plan for your family and friends so that you know that you can leave something for them.
