Inheritance Tax Planning
Inheritance Tax Planning
We know this isn’t the easiest subject to think about, but unfortunately, none of us are going to be here forever. And for many expats, who may have assets spread across the globe, planning ahead is especially important—but often overlooked.
Whether it’s bank accounts, pensions, or property, understanding what happens to your assets when you’re no longer around can prevent stress and complications for your loved ones.
Meeting with an advisor can help you get clarity on key questions, such as:
- Inheritance tax allowances: Married couples in the UK typically have a £650,000 allowance before inheritance tax applies. But if your spouse has a different nationality, the rules can be very different.
- Gifts you’ve given: Have you made any gifts to family or friends in the last 7 years? Even small amounts—sometimes as little as £2,000—can affect what’s taxable.
- Helping your children or grandchildren: Have you contributed to a house deposit, or provided support for grandchildren, like travel costs, prams, or cots? These are often overlooked when planning for inheritance.
- Your pension: Many people assume their pension will automatically go to their spouse, but that’s not always the case. Could benefits be reduced? What happens if a lump sum is paid and taxed at 40%?
A professional advisor can help you understand the rules, make informed decisions, and ensure your loved ones are protected.