The loss of mental capacity is something few of us want to imagine, but it’s an essential consideration when planning for the future. If an individual loses the ability to make decisions for themselves, their finances can become frozen, leading to significant challenges for their loved ones. Understanding the legal and financial processes involved, including applying for deputyship, and the associated costs can highlight why proactive planning through a Property and Financial Affairs Lasting Power of Attorney (LPA) is so important.

When purchasing a property with someone else, whether a spouse, partner, family member, or friend, it’s essential to decide how you will hold ownership. In the UK, two primary ways to co-own property are through joint tenancy and tenants in common. Each structure has distinct legal and financial implications, so choosing the right one can have a significant impact on your estate planning, financial security, and future goals.

While ISAs offer valuable tax benefits during your lifetime, it’s essential to understand how they’re handled after death, especially if you want to minimise complications for your beneficiaries. This post will cover what an ISA is, what happens to it upon the account holder’s death, the probate process, and the benefits and drawbacks involved.

Inheritance Tax (IHT) can significantly reduce the wealth passed on to your beneficiaries after your death. In the UK, IHT is charged at 40% on the value of your estate that exceeds your tax-free allowances such as the nil-rate band and residence nil-rate bands, both rates have been fixed at the current levels since 2020, meaning more individuals are becoming subject to paying Inheritance Tax than previously the case. However, there are legal and strategic ways to reduce this liability, one of which is making donations to charity.

Charitable giving is not only a means of supporting causes close to your heart, but it also provides substantial tax relief, potentially reducing your overall IHT rate. In this blog, we'll explore how charitable donations can mitigate your IHT liability, the rules involved, and both the advantages and disadvantages of using this strategy.

When you pass away, your pension doesn't necessarily die with you. Instead, it can provide financial security for your loved ones. However, the way in which your pension is handled after death depends on various factors, including the type of pension plan you have and the choices you made during your lifetime. In this blog post, we will explore what happens to your pension when you die, the different ways in which it can be paid to your beneficiaries, and how these payments may be taxed. Additionally, we'll discuss the pros and cons of each option. It’s important to remember that the specific options available will depend on your pension plan and its rules.

Inheritance Tax (IHT) is a tax on the estate of someone who has passed away, which includes their property, money, and possessions. In the UK, the standard IHT rate is 40% and applies to estates valued in excess of any nil-rate bands or residence nil rate bands that may be applicable to the estate. However, there are ways to reduce your IHT liability, and one common method is through gifting assets during your lifetime.

One crucial aspect of gifting assets is the seven-year rule. This rule is vital to understand as it determines whether gifts you make during your lifetime will be exempt from IHT or subject to a reduced rate. In this blog post, we'll explore the seven-year rule in detail, explain how tapering works and provide a brief overview of some other exemptions and allowances.

Inheritance and estate planning can be complex and overwhelming, especially during the emotional time following a loved one’s death. One tool that can help manage this process is a deed of variation. If you’ve recently received an inheritance and are wondering how to best handle it, understanding the benefits and drawbacks of a deed of variation is crucial.

With exam season over, over 550,000 students are expected to take up places at UK universities in September this year. While this is an exciting new chapter for many young adults, the enthusiasm may be tempered by the daunting thought of financing their education. Student loans are available, but the prospect of facing debt exceeding £60,000.00 at the end of their course can be a significant worry. This concern may even influence whether to attend university at all.

Business Relief (BR) is designed to encourage investment in businesses by reducing the value of certain business assets when calculating their value for the purposes of assessing Inheritance Tax on an individual’s estate. Introduced in 1976, BR can reduce the taxable value of qualifying business assets by either 50% or 100%, depending on the type of asset.

As financial advisers, we spend much of our time emphasising the importance of planning for the future. While we often focus on investment strategies and retirement plans, there's another aspect of financial planning that often gets overlooked but is equally crucial: Lasting Powers of Attorney (LPA). According to the Office of the Public Guardian (OPG) it was estimated that only 22% of UK adults have LPAs in place. In this post, we will explain what LPAs are, why they are essential for your financial well-being, and the potential consequences of not having one in place.

Inheritance tax (IHT) can be a significant concern for many individuals, particularly those with sizable estates. However, there are strategies available to mitigate this tax on death, and one such strategy is leveraging the inheritance tax annual exemption. In this blog post, we'll delve into what the annual exemption entails, its benefits, and how it can accumulate over time to create substantial savings outside of the estate.

As you approach retirement, the decision of what to do with your pension funds can be overwhelming. One option that has been increasing in popularity as a result of rising interest rates is purchasing an annuity; a financial product that offers a guaranteed income for life. But before you make a decision, it's crucial to understand both the benefits and drawbacks of using your pension funds for such a purpose.

As a financial adviser, I've witnessed first-hand the challenges families face when a loved one passes away without a will. Dying without a valid will, known as dying intestate, can lead to a complex and often stressful process of estate administration. In this guide, we'll explore what happens if you die intestate, the major drawbacks of not having a will, and the benefits of making a will.

Inheritance tax (IHT) can be a significant concern for individuals looking to pass on their wealth to the next generation. The burden of IHT has led many to explore legitimate avenues to mitigate its impact on their estate. One such avenue is Business Property Relief (BPR), a valuable tax relief provided by the UK government. In this blog post, we will delve into the intricacies of BPR, explaining what it is and outlining the potential benefits it offers from an inheritance tax perspective.

Many individuals understand the benefit of having a life policy in place with the aim of providing a form of financial protection to their loved ones in the event of their deaths. However, one such decision that is often overlooked is writing a life insurance policy into trust. This strategic move can provide significant benefits that extend far beyond the just setting up a life insurance policy and getting on with your life.

In terms of inheritance tax planning, understanding of available allowances is crucial. The Tapered Residence Nil Rate Band (RNRB) is one such element that demands attention. Introduced in April 2017, the RNRB provides an additional inheritance tax allowance specifically for individuals passing on their main residence to direct descendants. However, its tapered nature can result in a reduction or even loss of this valuable relief for higher-value estates.

Securing your financial future is about more than just smart investments, it's also about ensuring your loved ones are protected, even when you're no longer here. One essential aspect of this planning is having a will in place. In this blog post, we will emphasise the importance of wills and explore the different types of wills available in the UK, empowering you to make informed decisions and protect your legacy.

Inheritance planning is a topic often overlooked in financial discussions, yet it plays a crucial role in securing your family's financial future. Two significant components in the UK inheritance landscape are the Nil Rate Band (NRB) and the Residential Nil Rate Band (RNRB). As an independent financial adviser, I aim to shed light on these valuable allowances, helping you make informed decisions to maximise your inheritance for your loved ones.

Inheritance tax (IHT) is a financial topic that often creates confusion and concern among individuals and families in the United Kingdom. It is a tax levied on the value of an individual's estate (property, possessions, and money) when they pass away. In this comprehensive guide, we will explore what inheritance tax, how it works, who is affected, exemptions, and strategies to mitigate its impact.