| Most people, other than those leaving the majority of their assets to charity which is exempt from tax, prefer that as much as possible of their assets pass to their family or friends rather than the tax office.
Estate planning relates both to planning to ensure the minimum tax bill and also that those of you with more complicated circumstances e.g. second marriages, vulnerable beneficiaries, business or farming assets can arrange your affairs so that your estate can be dealt with in the most advantageous and fair way.
Estate planning takes two forms, firstly lifetime planning, such as understanding all the available tax reliefs and exemptions, or the creation of family trusts, and secondly planning by your Will. It requires an understanding of your potential future needs and concerns.
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The best planning is the simplest, if that will achieve your aims, but sometimes more sophisticated arrangements need to be considered.
A full understanding of Inheritance Tax Capital Gains Tax and Income Tax and the interaction between them is needed to put in place the right plan for you. It is important that you take advice early as many apparently straightforward actions can have expensive unintended consequences (such as a gift of your house to your children whilst you are still living in it).
The most important thing is that you are comfortable with whatever arrangements you put in place. |
