Personal –


lifetime guaranteed income:

A lifetime guaranteed income provides reassurance to individuals who may be concerned about the volatility of the investment landscape. With traditional retirement portfolios susceptible to market fluctuations, the risk of exhausting funds prematurely looms ominously. However, with a universal life plan, one is afforded the invaluable security of never facing financial depletion due to stock market downturns for the entirety of their life.

Will Planning

The initial step entails meticulous Will planning, spanning both the United Kingdom and the jurisdiction of your residence.

Why does the establishment of a Will hold such paramount importance?

Crafting a Will empowers you to precisely orchestrate the fate of your estate upon your passing. It guarantees that your intended beneficiaries receive their rightful inheritances in alignment with your directives, thereby forestalling any potential discord among family members. Above all, crafting a Will bestows a profound sense of tranquility and assurance. It ensures the assets get passed to the right person at the right time (avoiding possible confrontation and much longer delays when already in a very emotional time for the loved ones).

What are the ramifications in the absence of a Will?

Inheritance Tax (IHT) Planning:

A thorough examination of your Inheritance Tax (IHT) standing is imperative, given that it presently incurs a 40% levy on the net worth of assets surpassing the Nil Rate Band. The latter, fixed at £325,000 per individual or £650,000 for couples, remains unchanged until 2028. However, under certain circumstances, this threshold can escalate to £1,000,000 for couples, provided their residential property passes on to a direct lineal descendant. Moreover, the settlement of IHT dues to Her Majesty’s Revenue and Customs (HMRC) is mandated within six months from the date of demise, necessitating proactive planning beforehand. After this period HMRC have the right to charge interest.

Why does IHT planning carry such weight? For individuals recognized as UK domiciled or deemed domiciled by HMRC, regardless of their current residency status, IHT is levied on their global assets. This designation is confirmed by HMRC retroactively, underscoring the criticality of preventive strategizing. Conversely, non-UK domiciled individuals are subject to IHT solely on their UK-based assets, warranting careful navigation of cross-border tax complexities. The biggest confusion for clients is the clients domicile and their residency, which is on of the areas where we can help. Domicile clarification is key for IHT planning.

Assets susceptible to IHT encompass a spectrum ranging from shareholdings in corporations, primary residences, additional properties, savings and investments (including ISAs), vehicles, to personal effects.

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