We know inheritance and what needs to happen once you pass is never an easy conversation to approach, therefore we offer 5 ways in which you could make the conversation a little easier.
1. The importance of an up-to-date Will
When you are making a Will, this is a good time to talk to your family about your wishes. The research found just four in ten (40%) of over-55s have an up-to-date and valid Will.
2. Take advantage of the gift allowance
You can give away £3,000 each year, and this will not be subject to IHT. In addition, parents can gift £5,000 to each child as a wedding gift, while grandparents can give £2,500. However, the research shows one in three people don’t know how much you can gift each year without having to pay IHT.
Gifting money regularly throughout the year can be a great way to financially help loved ones, and it can also reduce your IHT liability. Some people will find it hard asking for money, so try and speak to your children and grandchildren to find out if you can help them with something specific, such as a new car or school fees.
3. Let life events help you start a conversation
The research shows that some life events, such as a health scare, could prompt people to talk to their loved ones about inheritance matters.
However, there are some positive events, like a birth in the family or getting married, that can also make people evaluate their plans. Use these opportunities as a way of talking to relatives about how you would like to pass on your wealth.
4. Talk about later-life care
Social care is a much-talked-about topic, and many people are worried about how they will pay for care when they get older. As a result, people may be starting to plan for this earlier than previous generations. It’s important to talk to your family about the care you want so they stay true to your wishes. This could be
the perfect time to introduce the subject of inheritance, as estate planning and later-life care go hand in hand.
5. Talk about family heirlooms
If you find it hard to approach the subject of estate planning with your family, then a good place to start could be talking about family heirlooms. People love to hear stories about older relatives, even if they never had the chance to meet them. Talking about items that are important to you or were important to other
family members can be a great way to start a conversation about estate planning.
To discuss putting in place an estate plan to reduce or mitigate Inheritance Tax, please contact us – don’t leave it to chance.