The alternatives to traditional inheritance
The importance of looking after your money in order that it can provide for you and your loved ones in the future is something which should be carefully considered, and is perhaps even more important given the fact that the population is living longer and people therefore need to consider provision for long term care.
With this in mind, individuals may feel that there will not be much left to pass on in the form of a traditional inheritance, but many are still waiting until after their death to pass on their assets.
Recent figures have revealed the percentage of assets passed on to others. Around 1.6 million adults (around 3.6 per cent of the population) accepted an inheritance of at least £1,000 between 2008/10, half of inheritors received less than £10,000 and ten per cent received £125,000 or more. Just over 88 per cent of inheritances involved money and savings. Around 19 per cent of inheritances involved property.
There are many ways of passing on your assets so that your loved ones can benefit. Trends are showing that people are increasingly choosing to pass on their wealth and assets before they die. These individuals are making the most of the opportunities available to them which can minimise tax liabilities and large inheritance tax bills which may be incurred by family after their death.
With inheritance tax (IHT) currently payable on the value of any assets over £325,000 and the rise in property prices, many more people are finding themselves included in this tax bracket but are taking advantage of lifetime gifting that, if made seven years before death, is considered exempt from IHT.
There are many options available which can reduce the tax liabilities on assets for individuals, making a significant difference to their estate left available for inheritance.
At Royds, our experts can provide specialist advice and guidance to individuals regarding protection of wealth and assets for the future including the benefits of lifetime gifting, inheritance tax mitigation, long-term care funding solutions and effective estate planning.
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