Inheritance Tax (IHT) Planning incorporates advising clients to
review their Wills
and create Lasting Powers of Attorney.
Saving tax should not be the only motivation
There may be concerns surround the efficient passing down of wealth to future generations, for example:
- without compromising your childrens’ vigour for self-motivation towards saving
- retaining sufficient capital for your own personal security, such as meeting the cost of residential or nursing home fees
- maintaining your desired lifestyle
This is much more than just planning an estate so you do not have to pay inheritance tax, though often that is what most people want to do. However, planning your estate involves determining how an individual’s assets will be preserved, managed and distributed after death. It also takes into account the management of an individuals properties and finances in the event that they become incapacitated.
The most basic step in estate planning is to write a will. 67% of the country do not have a will or one that is up to date. It leaves many people facing a longer more complex situation than is necessary, on death.
In England and Wales, a lasting power of attorney is written so that if a person is unable to act for themselves, legally they have appointed someone else to act for them. The Lasting Power of Attorney is split into two separate documents, one covering the health and welfare of the individual, the other covering their property and finances. Each document needs to be registered with the office of the public guardian and needs to be certified by a professional or someone who is willing to attest to the document (much like a passport).