PUTTING YOU IN CONTROL
From a planning perspective, leaving an estate with a high balance tells me several things – either you are very wealthy, or sadly died too soon. The alternative is that you didn’t realise that you could spend or give rather more than you did, for fear of running out of money.
This is precisely what we address with good financial planning. Striking the balance between living today and planning for tomorrow. Financial planning is not really about investments, its about your values and how you wish to maintain your lifestyle and use your money wisely.
DEATH AND TAXES? OR A LIFETIME OF TAXES AND THEN DEATH AND TAXES.
You have likely paid tax on most of the money you earned in your lifetime through income tax and national insurance. You have also paid taxes on a pay-as-you-go basis for VAT and excise duties, or stamp duty, perhaps even investment growth or if you are an NHS doctor, tax on income you have not even had yet*. Inheritance tax feels rather like the last snub from HMRC at 40% of everything above your threshold and exemptions.
I’m guessing you wonder where it all goes and whether you are getting fair taxes. Tax evasion (not paying due taxes) is illegal, but tax avoidance (using the allowances and options available as set out by Government and HMRC) means you can take some back or at least minimise how much you pay.
Tax planning is a significant and much undervalued aspect of what we do here. Whilst many in regulation and media focus on charges and volatile markets, few seem to be bothered about tax rates north of 40%, 45%, 55% and 60% that are all very much alive.
Inheritance tax is a bit like leaving HMRC a very hefty tip after a lifetime of taxes. So talk to us about how to minimise, avoid or mitigate inheritance tax (or any other tax).
* Annual Allowance tax charge and tapered annual allowance for pensions is the main reason why many doctors are reducing hours within the NHS or retiring early. The Annual Allowance was part of “Pension Simplification” (you must be kidding!) introduced by the Labour Government in 2004 and implemented from April 6th 2006. The Conservative Government decided to double down by introducing the tapered annual allowance in 2015, something I have been writing to various Chancellors explaining the folly and problems that would be caused. It was introduced, by guess who… dear George.
Inheritance tax makes up about 1% of taxes and penalties paid to HMRC and each year is roughly the same amount collected as from insurance premium taxes. Inheritance tax is paid by your estate, essentially taking money from your beneficiaries.
You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email firstname.lastname@example.org