Wealth Transfer Strategy

There are several ways to avoid stressful scenarios during the transfer, like assets being frozen or subject to fees, but the ideal strategy depends on your goals now and in the future. The best way to plan is alongside a supportive and knowledgeable wealth planner who can take your needs, goals, and aspirations into account today, and going forward.

• Gifting: Many people want to see their loved ones enjoy their inheritance and gifting can form a great part of your overall wealth planning strategy. By having the right plan in place and using the allowances and tax reliefs available, you can see your loved ones benefit from your gifts.

• Legally execute a will: A will is the most widespread method of transferring your wealth, and details who will receive your assets and has an executor who carries out your wishes. This process only takes effect when you die and may be subject to going through probate, which can become costly and time-consuming, especially when significant wealth and assets are concerned.

• Lasting power of attorney (LPA): A LPA ensures decisions about your financial affairs are handled by those you trust.

• Name your beneficiaries: This involves naming your beneficiaries and keeping all documentation up to date on all insurance contracts and other assets. Part of your estate planning and transfer strategy process should be to review all the beneficiaries listed on your accounts and contracts at every financial institution you use. 

• Create a trust: Trusts can be used in different ways and can be an effective way to pass  assets to the next generation. Putting assets into trust gives you control over who manages these assets and enables them to distribute assets according to the conditions you set. Certain irrevocable trusts offer an excellent way to reduce the amount of taxes loved ones pay when receiving an inheritance.

• Trusted advisers: Ensure your legal and financial planning teams are aligned to mitigate any unnecessary confusion in the execution of your wishes.

A tax-efficient plan ensures your beneficiaries and charities will receive a more significant transfer. 

Estate planning  strategies:

Spend it – enjoy yourself. There is no Inheritance Tax (IHT) liability if there is nothing to  pass on.

Outright gifts – you can take advantage of annual exemptions and allowances to gift assets throughout your life.

Tax wrappers – different investment structures are subject to different  tax treatments. From trusts to investments that qualify for business relief, and pensions, there are many ways a financial planner can create a wealth transfer plan.
 

Protection – can form a part of the strategy to provide liquidity to cover some, or all, of the IHT bill, or any other associated costs with death. It is crucial protection if structured correctly with the use of a trust.

It is important to review your cash flow forecast to assess how much money you might need to maintain your lifestyle, consider future long-term care needs, and how you might use any surplus efficiently . A wealth planner can help you work this out.

Good estate planning can help you place the right wealth in the right hands at the right time. It allows you to consider your views on lifetime gifting, post death legacy, and designing an IHT mitigation strategy through non contentious structures and gifting plans.