Inheritance Tax planning

Inheritance tax planning | M&G Wealth Advice

Be able to support your family financially

Thinking about death can be an emotional subject. But if there's any silver lining, it's the positive financial impact passing your estate can have. Having conversations about what you want your estate to achieve can go a long way. And thinking about this earlier rather than later can be especially beneficial. Doing so may allow more opportunity to make better use of tax allowances or for your loved ones to enjoy what you've given them in person.

Effective planning can be complicated though, and covers a broad range of topics. We can provide made-to-measure recommendations that help click everything into place, whilst supporting your needs and goals.

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Our advisers talk through the most common methods

Inheritance Tax is currently the 40% tax paid on your estate on anything above £325,000. Inheritance Tax can be complex because of certain exemptions and additional limits that may come into play depending on who you leave your estate to, amongst other things. It’s an area deserving of careful attention, especially considering the average Inheritance Tax bill was £215,000 in 2021/22.

As advisers, we can help by…

Organising your money and other assets in a tax-efficient way, meaning those set to inherit your estate aren’t left with a surprise. This might involve setting up a trust or gifting money to loved ones while you’re still alive. Inheritance planning can be very complicated, so having an expert on board can pay off.

Tax rules can change and the impact of taxation and any tax relief depends on your circumstances, including where you live.

Gifting is the tax term given to passing money to people or causes you care about while still alive. It can be a smart way to help either remove or minimise Inheritance Tax, and allows you to see first-hand the benefits your money provides. The timing of a gift is important, as the longer you live after making it, the less tax your loved ones will have to pay. Live for seven years afterwards, and your gift usually wouldn’t be taxed at all.

As advisers, we can help by…

Crafting a tax-efficient gifting structure that suits you and those set to receive it. There’s a few things to be aware of when it comes to gifting – such as tax-free allowances and exemptions – so we’ll talk you through everything in detail.

Tax rules can change and the impact of taxation and any tax relief depends on your circumstances, including where you live.

Trusts are a legal arrangement which you can use to pass money and other assets to your loved ones. Providing certain conditions are met, anything you place in a trust will no longer be considered legally owned by you. Instead, a trustee will take ownership, and it’s their job to manage things responsibly for whoever you intend to receive it. When setting up a trust, you can determine various rules. For example, you may only want a child to be able to access it once they reach a certain age.

As advisers, we can help by…

Recommending whether or not a trust is right for you. There are different types available – each with varying tax rules – so we’ll advise what’s best suited to your goals and personal circumstances. Any gifts into a trust can't be used for your benefit, so you need to be sure you can afford to make them. We’ll help you decide either way.

Tax rules can change and the impact of taxation and any tax relief depends on your circumstances, including where you live.

The benefits of inheritance planning with M&G Wealth Advice

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No matter where you are in life, we can help you pass your money and other assets tax-efficiently to those that matter most.

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