Intergenerational planning and cutting your Inheritance Tax (IHT) bill are often viewed as one and the same. Although they can go hand in hand, according to this guest blog by Equilibrium Asset Management.
Intergenerational planning is not just about IHT planning. It’s about making sure that the right people get the right amount of money at the right time. This sounds very simple but can lead to some very difficult, emotion-filled decisions.
Inheritances are happening later and later in life as we all live longer. I regularly have clients receiving inheritances well into their 60s, or even their 70s. This means money can be received at a time when spending habits are already ingrained, and often simply isn’t needed. Does this set the example that money should be accumulated indefinitely rather than use today?
Families are increasingly under financial stress due to rising house prices, stagnant wages and childcare costs. This pressure can build and lead to working longer hours, sticking to a job that is not enjoyed and ultimately having less time doing the things most valued, spending time with the important people around us. Sometimes even a little financial help in the form of a gift from a relative can relieve this stress.
Gifting is a subject that often comes up with many of our clients. Below we look at some of the barriers that regularly come up and consider some solutions:
However, it is important to note that depending on the size of the gift there may be inheritance tax liabilities. There are limits on how much you can give tax-free and it is important to consider any tax implications at the outset.
Every family situation is unique and whatever problems you may see, we have the experience to help clients think of ways to overcome them.
Making sure that the right people, get the right amount of money at the right time is certainly not easy. Then again, truly worthwhile things rarely are.
To see how Equilibrium Asset Management may be able to help you get in touch with them on 0808 156 1176 or at firstname.lastname@example.org
The information provided in this blog is based on the opinion of Equilibrium Asset Management and is for general information purposes only. It is not and should not be construed as financial advice.