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.