Inheritance Tax Planning

David and Muriel

David and Muriel had worked hard all their lives – they were now in their late sixties and retired, enjoying a comfortable lifestyle with several holidays a year. Benefitting from David’s final salary pension scheme, some private pensions and interest off their savings and dividends from their shares and ISAs, they had plenty of income. Taking into account everything they wanted to do in retirement, even after allowing for inflation and factoring in the potential costs of long term care in the future, David and Muriel were in the fortunate position that running out of money would never be an issue. In fact, their wealth would continue to increase and this could prove to actually be the problem.

They’d heard a few alarming stories and the words ‘inheritance tax’ loomed on the horizon. Having paid tax all their working lives, they really didn’t want to pay yet more money to the Chancellor at the end of their lives, based on the value of their house. But should they downsize just for this reason?

By doing some careful estate planning with David and Muriel, we helped them agree on a structured ‘spending and gifting’ plan that would help them to minimise their Inheritance Tax liability. This enabled them to maintain their desired lifestyle yet, at the same time, gradually pass wealth down to their children and grandchildren, without the Chancellor benefitting.

Please note that the Financial Conduct Authority does not regulate Inheritance Tax and Estate Planning