This months new addition of the Estate Planner - some great articles this month which are definitely worth a read

1. THE
ESTATE
PLANNER
INSIDE
THIS ISSUE
Inheritance Tax is payable by
some people that, for the most
part, could have been avoided.
If you want your estate to go
to your loved ones with the
minimum amount of IHT
payable, you should obtain
professional advice. There are
currently a number of generous
reliefs relating to IHT. Indeed,
if the correct planning is started
early enough, it may be possible
to avoid IHT altogether. Turn to
page 02 to find out more.
The unexpected death of a spouse
can lead to considerable financial
problems if the surviving partner
is not fully aware of the state
of the family’s finances. All
too often, couples do not fully
discuss the implications of the
death of a spouse or partner,
and this can create additional
stress that could easily have been
avoided. On page 04, we look at
why it’s worth taking some time
out to consider your family’s
finances.
Also in this month’s issue,
we provide our 10-point
Inheritance Tax checklist. Why
not start planning today to spare
your family from a potential
Inheritance Tax Bill tomorrow?
01
It’s good to talk
To arrange an appointment or
to discuss any concerns that you
may have in relation to making
appropriate protection for you,
your loved ones and your estate,
please contact us. We look forward
to hearing from you.
INHERITANCE
TAX CHECKLIST
Start planning today to spare your family from a
potential Inheritance Tax bill tomorrow
1. The main ways to avoid
Inheritance Tax are to spend
your money while you are alive
or give it away.
2. Work out how much IHT
might be due on your estate and
regularly review it so you know
what potential liability there is.
3. Find out if the rules which
took effect from October 2007,
which mean that married
couples and registered civil
partners can now make use of
each other’s tax-free allowance
without special tax planning,
apply to you.
4. If you set up special Wills to
deal with IHT, review them to
see if they are still relevant.
5. Make full use of any tax-free
gifts you can make whilst you
are alive.
6. Put life insurance policies
under an appropriate trust.
7. If there’s going to be a big IHT
bill, think about taking out an
insurance policy for your heirs
to pay the bill.
8. Make a Will if you don’t have
one – otherwise the people you
want to inherit may not.
9. Anything you leave to charity
is free of IHT, so it can be a
Issue 28 – April 2017
useful way of reducing your
potential IHT liability while
benefiting a good cause.
10. Never take steps that might
leave you struggling for money
while you are alive in order to
save tax after you’ve died.
It’s good to talk
To arrange an appointment or to
discuss any concerns that you may
have in relation to making appropri-
ate protection for you, your loved
ones and your estate, please contact
us – we look forward to hearing
from you.

2. 02
I
nheritance Tax (IHT) is payable
by some people that, for the
most part, could have been
avoided. If you want your estate
to go to your loved ones with the
minimum amount of IHT payable,
you should obtain professional
advice. There are currently a
number of generous reliefs relating
to IHT. Indeed, if the correct
planning is started early enough,
it may be possible to avoid IHT
altogether.
NEW MAIN RESIDENCE
TRANSFERABLE NIL-RATE
BAND
From 6 April 2017, there will be a
new main residence transferable
ESTATE MATTERSStructuring your affairs efficiently means starting the correct planning early enough
nil-rate band (family home
allowance) that will apply when a
main residence is passed on to a
direct descendant. This new main
residence transferable nil-rate
band will work alongside the
existing IHT nil-rate band, which
is currently £325,000. In the same
way as with the current nil-rate
band, any unused main residence
transferable nil-rate band will be
transferred to a surviving spouse
or registered civil partner.
A property which was never a
residence of the deceased, such
as a buy-to-let property, will
not qualify. The allowance will
initially be set at £100,000 in
2017/18, increasing to £125,000 in
2018/19, £150,000 in 2019/20 and
up to £175,000 in 2020/21 (and
then increase each year in line with
inflation (CPI)).
INHERITED FROM A SPOUSE
It is possible therefore that by
2020/21, an individual will
have their own nil-rate band
of £325,000 as well as a main
residence transferable nil-rate
band of £175,000 in respect of
their main residence, plus a nil-
rate band of £325,000 inherited
from their spouse and a main
residence transferable nil-rate
band of £175,000 inherited from
their spouse.
INHERITANCE TAX (IHT)
IS PAYABLE BY SOME
PEOPLE THAT, FOR THE
MOST PART, COULD HAVE
BEEN AVOIDED. IF YOU
WANT YOUR ESTATE TO
GO TO YOUR LOVED ONES
WITH THE MINIMUM
AMOUNT OF IHT PAYABLE,
YOU SHOULD OBTAIN
PROFESSIONAL ADVICE.

3. 03
This gives the much advertised
total of £1 million. It is worth
noting that the current nil-rate
band of £325,000 is now set to
remain until 2020/21. There
is also going to be a tapered
withdrawal of the main
residence transferable nil-rate
band for estates worth more than
£2 million.
EFFECT OF THE PROPOSED
CHANGES
Few taxes are quite as emotive
– or as politicised – as IHT.
The structures into which you
transfer your assets can have
lasting consequences for you and
your family. The current rate of
IHT payable is 40% on property,
money and possessions above the
nil-rate band. The rate may be
reduced to 36% if 10% or more of
the estate is left to charity.
It makes sense to ensure that
your affairs are structured in the
most tax-efficient way possible.
However, it isn’t easy to keep up
with the many exemptions and
reliefs available. So what should
you consider?
LIFETIME GIFTS
Lifetime gifts to individuals are
potentially exempt transfers and
fall outside the scope of IHT,
provided the donor survives at
least seven years from the date of
the gift.
TRUSTS
Trusts can sometimes help you
to eliminate unnecessary tax
charges, enabling the maximum
possible part of your family’s
wealth to be preserved. You may
like to transfer part of your wealth
to a family member but still retain
control; our specialists can advise
on setting up trusts and can take
care of all the administration.
WILLS
One important way to minimise
IHT is to make a Will, so as
to leave your family with the
maximum assets and at the least
tax cost.
BUSINESS AND CORPORATE
STRUCTURES
If you have a business, it is
also important to examine
the structure of your business
when considering your affairs.
Changing the structure of a
business can have significant tax
implications.
ENJOY SPECIAL
CONCESSIONS
The treatment for IHT purposes
is more favourable for some assets
than others. Business assets and
shares in unquoted companies,
agricultural land and works of
art, for example, all benefit from
special concessions which may
assist in passing wealth from one
generation to the next.
CHARITABLE GIFTS
Making gifts for charitable
purposes can be highly effective
in potentially reducing an IHT
charge on death.
ARE YOUR NEEDS FULLY
CONSIDERED?
Without the right advice and
careful financial planning, HM
Revenue & Customs could
become the single largest
beneficiary of your estate
following your death, which
is why you should obtain
professional financial advice
to ensure your needs are fully
considered. To review your
situation, please contact us.
INFORMATION IS BASED
ON OUR CURRENT
UNDERSTANDING OF
TAXATION LEGISLATION
AND REGULATIONS. ANY
LEVELS AND BASES OF, AND
RELIEFS FROM, TAXATION
ARE SUBJECT TO CHANGE.
THE FINANCIAL CONDUCT
AUTHORITY DOES NOT
REGULATE WILL WRITING,
INHERITANCE TAX
PLANNING OR TAXATION
ADVICE.

4. 04
The content of this publication is for your general information and use only, and is not intended to address your particular requirements. The content should not
be relied upon in its entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely informa-
tion, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual
or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We
cannot accept responsibility for any loss as a result of acts or omissions taken in respect of the content. Thresholds, percentage rates and tax legislation may change
in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the
investor. The Financial Conduct Authority does not regulate Will Writing, Inheritance Tax Planning or Taxation Advice. All figures relate to the 2017/18 tax year,
unless otherwise stated.
PENSION PROVISION
You also need to consider what
death benefits will apply if you
die before drawing your pension
benefits under your current and
any earlier pension arrangements.
Will a lump sum death benefit be
payable? Will provision be made
for a pension to be payable to a
surviving spouse, registered civil
partner or dependants?
If a lump sum is payable to any
one or more of a range of potential
beneficiaries at the discretion of the
trustees of your scheme, establish
that your desired beneficiaries
fall within the eligible group of
beneficiaries and notify the trustees
of who you would like them to
consider when making any lump
sum payment. Schemes typically
have a benefit nomination form for
this purpose.
INVESTMENTS
Provided you say so in your Will,
investments (such as unit trusts),
investment trusts and shares
can revert to your spouse or
registered civil partner when you
die, although in some instances
the tax advantages of certain
investments may be lost. If you have
a substantial investment portfolio,
it may be advisable to bequeath
some of the investments in your
Will directly to your children or
grandchildren to make use of the
IHT nil rate threshold, provided
you leave enough for your surviving
spouse or registered civil partner
to live on. If a discretionary trust is
used with your surviving spouse or
registered civil partner named as
a beneficiary, the trustees can pay
capital or income or make interest-
free loans to that spouse.
WILLS
Don’t assume everything will
automatically go to your spouse or
registered civil partner when you
die. Ensure that you have a properly
drawn-up Will. Ask someone else
as well as your spouse or registered
civil partner to be an executor, and,
finally, don’t forget to tell them and
IT’S GOODTOTALK
The unexpected death of a spouse
can lead to considerable financial
problems if the surviving partner
is not fully aware of the state of
the family’s finances. All too often,
couples do not fully discuss the
implications of the death of a
spouse or partner, and this can
create additional stress that could
easily have been avoided. So it’s
worth taking some time out to
consider the following areas of
your family’s finances.
INHERITANCE TAX (IHT)
If you own your home on a joint
tenancy basis and are married,
there will be no tax liability on the
first death, because anything left to
a spouse or registered civil partner
is not subject to IHT. The same
applies when you each own half the
home as tenants in common and
each of you leaves your share in
your Will to the surviving spouse.
However, a surviving spouse must
be UK domiciled for an unlimited
amount to be IHT-free, otherwise a
reduced amount is IHT-free.
But IHT could be a problem once
the second spouse or registered
civil partner dies. Under the IHT
rules for the 2017/18 tax year, once
a chargeable estate is worth more
than £325,000, the excess becomes
subject to IHT at a flat rate of 40%.
If an IHT bill looks likely, it is more
sensible to make some provision
to meet it, otherwise your heirs
may be forced to sell the family
home or other assets simply to raise
enough money to pay the tax bill.
A popular solution is the purchase
of a whole-of-life insurance policy
written in an appropriate trust
and designed to pay out when the
surviving spouse dies.
When was the last time you discussed the family’s finances?
other family members where they
can find a copy.
DON’T LEAVE ANY OF THESE
AREAS TO CHANCE
The information provided is for
general guidance only. However,
if you leave any of these areas
to chance, in the event of your
premature death they will almost
certainly cause further distress
to your spouse or registered civil
partner and family. For a complete
analysis of your current financial
position, please contact us for
an assessment of your particular
situation.
INFORMATION IS BASED
UPON OUR CURRENT
UNDERSTANDING OF
TAXATION LEGISLATION AND
REGULATIONS. ANY LEVELS
AND BASES OF, AND RELIEFS
FROM, TAXATION ARE
SUBJECT TO CHANGE.
THE VALUE OF INVESTMENTS
AND INCOME FROM
THEM MAY GO DOWN.
YOU MAY NOT GET BACK
THE ORIGINAL AMOUNT
INVESTED.
PAST PERFORMANCE IS NOT
A RELIABLE INDICATOR OF
FUTURE PERFORMANCE.
ESTATE PLANNING, TRUST
PLANNING, TAX PLANNING
AND WILL WRITING ARE
NOT REGULATED BY THE
FINANCIAL CONDUCT
AUTHORITY.