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Support for your client conversations

You can use this client-facing content to help prompt your clients to engage with you and make plans for what they leave behind.

The content on this page can be sent to your clients to help them with their intergenerational financial planning needs. 

You can use these materials to show clients how working with you can help them to preserve wealth and protect their loved ones. 

We've taken every care to ensure the accuracy of the following information, please be aware that it's your responsibility to make sure anything you send is compliant and appropriate for your clients.

Educational articles to get the conversation started

These five articles are specially designed for you to download and send to your clients by email or post. We've also developed a template you can use as a covering letter. Open the template and just copy and paste the text to where you want to use it. Feel free to personalise it before sending it along with the articles to your clients.

Five fundamentals of estate planning

Will you leave an inheritance tax bill ?

Five tips on using gifts to reduce inheritance tax

Three tips for passing your pension on to your loved ones

Helping grandchildren with education expenses to manage IHT

A guidebook for your clients: Estate planning – get started on planning for what you want to leave behind.

Share this comprehensive guidebook with your clients to encourage them to think about their own plans and engage with you to take the next steps needed.

Just download this guide and send to your clients by email or post.

Download Estate Planning guidebook

Blogs for your clients

We've adapted the articles into content that you can share with your clients for example on your websites and newsletters.

It's easy to use the blogs and social media posts: Use the left hand menu to view and select the blogs and social media posts for each topic. Then simply copy the text and paste it wherever you choose.

Three tips for passing your pension on to your loved ones

Do you consider your pension an asset in the same way that you think about assets like property, bank accounts, cars, and investments? Some people see pensions differently to those types of assets, but the truth is that your pension is another valuable asset (sometimes worth even more than the family home).

That’s why planning for what happens to your money when you die should include planning for what happens to your pensions along with any other assets that you have.

Let’s take a look at some things you’ll want to bear in mind about passing your pension on to the people you care about most.

1. Find out what death benefits your pension provides

Pension rules and regulations can be very complex. When considering what you want to happen with your pension when you die, you need to know what type of pension you have, and the pension’s rules for what happens on your death.

Some pensions have automatic rules for what happens on your death. For example, they only give an income to a dependent (such as your spouse) on your death. Other pensions have more flexibility on who you can leave your pension to and how they can access it.

2. Complete a nomination of beneficiary form

For pensions that let you choose who you can leave your money to, you can complete a form called a “nomination of beneficiary”. This lets your pension scheme know who you want to leave your money to. In certain cases the scheme may pay to people not nominated if they feel that this is the best thing to do.

Completing a nomination of beneficiary form is important. If your loved ones aren’t on the form they may not be able to keep the money in a pension, which offers tax advantages. Instead, they may simply get a lump sum paid to their bank account.

So knowing what the scheme can offer can then help guide how you write the nomination of beneficiary form. Or perhaps you may want to look at an alternative pension that can provide the options you want for your loved ones.

3. Know what tax may be due

Your pension may be subject to Lifetime Allowance charges based on the total value of all your pensions you have used in your lifetime and passed on after your death. The standard Lifetime Allowance is £1,073,100 and any amount over this could be subject to tax - although you may have or could qualify for a Lifetime Allowance protection that is higher than this.

There can also be income tax considerations for your loved ones. This can depend on what age you are when you die, or when your money is paid out.

And further to this, while pensions are usually free from inheritance tax there can be instances where it would apply.

How I can help

The good news is that with my help, you’ll be able to understand the rules of your particular pension, and look at what actions you can take to reduce any negative impacts for your family.

Your pension is likely to be one of your most valuable assets and can provide much needed income for your loved ones once you’re gone.

Let me help you make the most of this valuable asset. I can also review how your pension fits in with your overall intergenerational financial plan to help you transfer your wealth to the next generation in the smoothest and most tax efficient way possible. Please give me a call to learn more.

Will I have an inheritance tax bill?

It’s a common misconception that inheritance tax only affects the extremely wealthy. However, if you’ve been looking into inheritance tax you may have read about a threshold of £325,000 before tax applies. Anything you own above that value, could be subject to 40% tax.

To understand how this relates to you and whether you’re going to be liable for inheritance tax, you’ll want to look at a few things. The following information is based on our current understanding of taxation law and practice in the UK which may change. The amount of tax you pay and relief you receive depends on your own personal circumstances which may also change in the future.

Figuring out the size of your estate is the first step

To judge whether inheritance tax is due, the first thing to do is calculate the value of everything you own.

We don’t often tot up the value of everything we own and it’s maybe why people often get caught out with inheritance tax. In fact, according to HMRC statistics, the average inheritance tax bill was a massive £209,000 in 2018/19. So, it’s really important to do this now.

It can also be surprising what is included in your estate for inheritance tax purposes and what’s not. For example, did you know that any gifts to your loved ones you’ve made in the last seven years could be included? Whereas the value of your pension might not be.

To start you should add up the value of your property, savings, investments and cars. Then, imagine you turned your house upside down. Anything that falls out should be included, like your TVs, laptops, furniture, antiques, jewellery and any valuable collections. You can see how quickly it would all add up. But does that mean inheritance tax would apply to all of it?

There are allowances that you need to be aware of

That threshold of £325,000 is an important figure because it’s a tax-free allowance that everyone is entitled to, no matter what your circumstances are or who you plan to leave your money to. You may have heard it being called the nil-rate band – but let’s call it a tax-free allowance just now to keep things simple.

There’s another big allowance, but it has some rules around it. The tax-free property allowance of £175,000 – or residence nil-rate band to give it its technical name – applies if you leave your home to your children or grandchildren.

So, if you add the two allowances together (£325,000 and £175,000) you can potentially leave £500,000 tax-free, as long as you leave your home to your children or grandchildren. The property allowance does reduce if your estate is worth a certain amount, but we won’t go into too much detail just now.

You can double your allowances to leave even more tax-free

Did you know if you’re married or in a civil partnership you can leave everything to your partner completely free from inheritance tax? However, this doesn’t mean you can ignore inheritance tax.

For example if you die first, everything would pass to your partner tax-free. But when they die, there could be inheritance tax due.

The good news is your partner can use your unused allowances. So, if you leave everything to them they can use your tax-free allowances of up to £500,000 plus their own £500,000. This means they can potentially leave £1m tax-free to children or grandchildren.

What if I do have an inheritance tax bill?

Inheritance tax is sometimes referred to as a voluntary tax. This is because there are many planning opportunities to reduce or prevent it.

Of course, with tax it’s never simple. There are a lot of complicated rules about inheritance tax. And there are a lot of potential pitfalls that could cost your loved ones a fortune. The good news is I am here to help and can advise what the best ways are for you to reduce inheritance tax.


Five tips on using gifts to reduce inheritance tax

As the saying goes, it’s better to give than to receive. But did you know that when you give your loved ones a gift you can also benefit as well as the person you’re giving to?

It may come as a surprise, but when you make gifts as part of your overall inheritance tax planning, you can have the pleasure of giving, bring joy to your loved ones through your generosity, and even reduce your inheritance tax liability at the same time.

But to avoid potential pitfalls, you’ll want to understand the rules first. The following information is based on our current understanding of taxation law and practice in the UK which may change. The amount of tax you pay and relief you receive depends on your own personal circumstances which may also change in the future.

1. Know what’s defined as a gift

What counts as a gift for inheritance tax purposes? Simply put, it can be anything that’s part of your estate. Property, cars, cash, investments, jewellery – even collections of stamps, wine, coins or sports memorabilia can be liable to inheritance tax.

One thing to remember is normally you can’t add conditions to your gifts. For example, if the gift is a car, you can’t continue to drive it. If the gift is a home, you can’t continue to live in it rent-free otherwise inheritance tax may apply. 

2. Begin giving early

As soon as you give a gift, an inheritance tax clock starts ticking. Usually, seven years must pass before your gift is 100% inheritance tax-free. If you die before this time lapses, the person you’ve given the gift to may owe inheritance tax.

It’s one reason for giving gifts early. When you’re younger you’re more likely to live seven years from the time the gift was given. Making gifts earlier also increases your chance of getting to experience the pleasure that comes from seeing those you love enjoy what you’ve given – and to thank you for it.

3. Use annual gift exemptions

Each of us has an annual allowance which permits gifts at or below £3,000, free of inheritance tax in any tax year. If this full amount isn’t taken one year, it carries over into the next year. This means that if you don’t give the full amount one year, you can give £6,000 the following year. This allowance can only be carried over for one year, however.

Everyone can also give as many gifts as they like below a value of £250.  These gifts are currently inheritance tax exempt – there’s no seven year clock ticking. It’s important to note that you cannot combine this small gift allowance and your annual allowance for any individual. This means that you couldn’t give someone a £3,000 gift and then another £250 small gift.

Donations to charities, including gifts to political parties, can also reduce inheritance tax.

4. There are special rules for weddings

Weddings are gift-giving occasions. But before handing over a gift to the happy new couple, consider inheritance tax.

You may not be aware, but a wedding gift offers a chance to reduce inheritance tax. The amount that you can give inheritance tax free depends on your relationship to the couple and the timing and amount of your gift. Generally, the more closely you’re related to the couple, the more you can give.

So if one of your children marries, you can give up to £5,000. If a grandchild or great-grandchild marries, this reduces to £2,500 or less. And if you’re giving to a relative or friend this drops to £1,000. But don’t wait until after the honeymoon to give your gift.  It must be given before, not after the wedding to avoid attracting inheritance tax.

5. Document, document

It’s very important that you track the details of any gifts that you’ve made to reduce inheritance tax.  You’ll need to record whom each gift was given to, the gift they were given, the date the gift was given, and the value of the gift.

It’s also helpful to keep evidence of the gift, for example, you can use a bank statement to evidence a gift of money. This will make it easier to establish if there is any inheritance tax due on your gifts when you die.

Reducing inheritance tax, one gift at a time

No one wants a gift given with love to create an unwanted tax issue for the recipient. Making sure that you’re giving gifts correctly can be complicated. Talking to me means I will give you advice on the most up to date tax rules and allowances. This can help prevent future problems and ensure you and your loved ones are getting the most benefit.

Please give me a call to look at your potential inheritance tax liability. I will set up a plan that will aim to reduce or even eliminate your inheritance tax liability, which could include giving gifts as well as a number of other strategies to reduce your inheritance tax.

The five fundamentals for leaving money to your loved ones

There’s an old saying that nothing is certain except death and taxes. I can’t help with the big questions about life and death. That’s a debate for the poets and philosophers. But what I can do is help you plan how to pass on your estate in a way that preserves your wealth for the next generation.

If you haven’t already made plans, and if you want to make sure the people you love are well provided for after you’re gone, you’ll need to start thinking about it. Here are some basic steps to help get you started.

1. Give me a call

Planning what happens to your money and possessions when you die aims to:

  • make sure your money goes to the people whom you want to give it to

  • reduce or even eliminate inheritance tax to leave more to those you love

  •  ensure that your wishes are carried out without unnecessary expense or delay

This might sound simple, but managing the transfer of your money and possessions after you’re gone is a complicated area with many financial and legal hurdles. The best way to avoid unwanted consequences is to get in touch with me.

2. Make a will and review it regularly

Do you know that if you don’t have a will, then your estate will be shared according to set rules which may be different from your wishes? The consequences can be devastating for those you leave behind.

If you’ve already made a will, that’s great. Please just make sure it’s kept up to date. A change in family circumstances, changes in inheritance tax rules – which happens more often than you might think  –  and wider legislation can all affect your will.

It’s recommended that you review your will at least every five years.

3. Set up a Power of Attorney

Sometimes people wrongly think because they have a will they don’t need a Power of Attorney (POA), but this isn’t true. The POA lets you appoint someone you trust to make financial and/or medical decisions for you if you’re not able to do so. For example, if you became ill.

It might help to think of a will as something that helps your loved ones after you die, whereas a POA is designed to help you while you’re still living.

Another common mistake people make is thinking that the POA means you’ve automatically handed over control to someone else, but again this simply isn’t true. It can start immediately or you can opt for it to kick in when you’re no longer able to act in your own best interests.

4. Make sure you know who stands to inherit your pension

It’s a strange anomaly, but your will doesn’t decide who inherits your pension. When setting up a pension, you normally have to complete a “nomination of beneficiary” form. The people who you list on that form will normally inherit your pension when you die.

Over the years, it can be easy to forget who you’ve nominated to inherit your pension. This information can also change and quickly becomes out of date if your circumstances have changed. If you’re not sure who inherits your pension, I can help and can also update your nomination of beneficiary form if needed.

5. Speak to your loved ones about these documents

This is often the step that’s forgotten about. It’s really important to have these documents and keep them up to date, but it’s even more important your loved ones know how to get hold of them when they’re needed.

By letting your loved ones know in advance you’ve done this important planning, it can make it a lot easier on them at what could be a very difficult time.

Plan today to prevent avoidable problems

Each of us are all unique individuals, no two of us have the same circumstances or family dynamics. By planning together in advance we can ensure that your intentions are respected, your family is protected and everything goes according to plan.

Intergenerational planning for financial advisers

Insight, expertise and practical solutions from Prudential, to support forward-thinking advisers in extending their expertise and value across more generations of a family.

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