Financial planning is not the same as financial advice. It is not a recommendation to purchase a particular product but an evolving action plan, regularly reviewed to ensure that your goals are met
You might have heard the term ‘estate planning’ and wondered what it involved. The word ‘estate’ just refers to everything you own, and estate planning refers to the plans you make so your money and valuable possessions are distributed in a certain way after you die. It’s crucially important
to have a legally binding will. Without one, there’s no guarantee your money or valuables will be passed on to your loved ones in the way that you wish. And not having a plan might mean they receive less if Inheritance Tax is due on your estate.
It’s always a good idea to take steps to get your affairs in order, and it can be a relief to know that you’ve taken the action needed to take care of those you leave behind.
What’s in your estate and why it matters
To find out if an Inheritance Tax bill might be due, you’ll need to calculate the value of your estate. Most people understand that their estate is made up of property, savings, investments and valuable possessions (e.g. cars, caravans and boats).
As per the recent budget, certain types of pensions will be coming back into your estate in the future.
But an estate also might include much more. Imagine you could turn your house upside down and shake it. Anything that fell out would also be included in your estate, for example your TVs, laptops, furniture, antiques, jewellery and collections. Also, some trusts might need to be included in the value of your estate.
Please give us a call if you have any questions around estate planning.