This weekend, King Charles will be coronated – and it’s got us thinking about inheritance. Behind all the pomp, pageantry, and Victoria sponge cake is a man inheriting his mother’s estate. And what an estate it is too. 

40% tax on your kingdom 

Your beneficiaries might not be set to inherit a kingdom from you, but it’s unlikely you want them to be deprived of your hard-earned wealth. Did you know that your estate (that’s everything you own), above £325,000, is subject to Inheritance Tax (IHT) at 40%? £325,000 is not much, and that’s before you take into account the value of your car, savings, investments and belongings. So if, for example, as a married or civil partnership couple your joint estate is worth £800,000, tax of £60,000 will have to be paid. 

In our experience, most people put off estate planning. It’s fair enough – considering what will happen when your life is over can feel a little morbid. Unfortunately, life is unpredictable, and by the time estate planning hits the top of your priority list, it could be too late. But it’s not just the uncertainties of life, or dying without a will, or the IHT trap that can cause issues. The inheritance of your preferred beneficiaries can also be impacted by the challenges and costs of living longer, the impact of broken marriages, and the loss of your mental capacity. 

Pretty bleak stuff for a celebratory weekend - so let’s reframe it.  

Why you should get ahead of your estate planning 

There are many advantages to early estate planning. You decide on your beneficiaries, you decide what goes to whom, and you decide the structure. Whatever your age and circumstances, we can help you establish exactly what you want to happen after your death. Say goodbye to the unknown, and hello to peace of mind. 

What about the tax? 

Working with you, we’ll help you take the necessary steps so that you pay as little tax as possible, by using the full range of personal exemptions and reliefs that are available. 

Get in touch  

If you’re not sure where to start, get in touch with us to talk to an experienced Independent Financial Adviser. Your initial consultation is totally free, so go and enjoy your local street party and give us a call next week.