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Estate Planning

Many people will amass various assets throughout their lifetime, from property and personal effects through to savings. In an ideal world, these would simply be passed down to relatives and close personal friends. However, bequeathing an estate to descendants or associates creates a variety of tax implications and legal complications, which many people fail to plan for during their lifetime.

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We have local offices in Edinburgh, Falkirk, Glasgow, Livingston and Stirling and provide Financial Advice on Estate Planning throughout Scotland. If you would like to speak to an Independent Financial Adviser (IFA) then book your free initial consultation.

What Is Estate Planning?

The process of estate planning is a necessary step towards ensuring that minimal taxes (or other related expenses) are deducted from a deceased person’s estate. Select Wealth Managers appreciate the importance of leaving financial affairs in good order, and our highly-trained professionals will approach each unique situation with a suitable blend of delicacy and determination. Our focus is always on achieving the most tax-efficient solutions while working in the best interests of the client, such as recommending ways to minimise inheritance tax. By making use of annual exemptions, available reliefs, lifetime gifts, pensions and trusts, inheritance tax liabilities can be minimised or even eliminated.

At its simplest, estate planning involves creating a Will and appointing an executor or power of attorney, to ensure that any requests are honoured. However, estate planning can also extend into areas like creating a trust and placing assets into it. Estate planning may even involve deciding on funeral arrangements, or naming a guardian to look after living dependants.

Inheritance Tax

It’s clear that estate planning is a complex process, as well as a potentially emotional one. This is why Select Wealth Managers will always act in the best interests of each client, providing clear and honest advice about the implications of any decisions made and offering practical guidance throughout each stage of any resulting processes. We’ll dedicate time to understand each family’s personal circumstances, so that our advice takes into consideration specific expectations or concerns.

As an example, our qualified advisers will be able to explain how inheritance tax works. In essence, this is a tax on the value of a deceased person’s estate. The standard IHT rate is currently 40%, paid on the value of any estate above £325,000; in addition, homeowners benefit from an extra £175,000 allowance if they pass on their primary residence to a child or grandchild. It’s been calculated that £6.1 billion was paid in IHT during the 2021/22 tax year (and monthly data up to December 2022 suggest the figure for 2022-23 will be even higher – source: HMRC). These thresholds have been frozen until 2028, which inevitably means more people are likely to be dragged into the IHT net.

On top of the trauma of losing a loved one, it can be painful to see a portion of their lifetime assets being handed over to the taxman. A Select Wealth Managers professional will be able to recommend inheritance tax planning solutions.

The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The Financial Conduct Authority does not regulate Inheritance Tax Advice where there is no investment element. The Financial Conduct Authority does not regulate Will writing or taxation and trust advice.

Ready to get started? Book your free initial consultation today