While wealth management teams often assist with investing and retirement, they can also advise on estate planning. As a result, Britons financially preparing for the day they pass away can ensure that the loved ones they leave behind are well taken care of.
Inheritance tax (IHT) is an important consideration during this process. IHT must be paid on an individual’s estate when they pass if it exceeds a certain threshold. Wealth management firms help people to dramatically reduce IHT payments and can sometimes stop a bill being triggered by tax-efficient measures such as gifting.
Calculating a future tax bill can be tricky as over a lifetime people experience many financial fluctuations which impact how much wealth they amass.
For this reason, a life assurance policy can be a suitable solution. These protective policies provide peace of mind as they ensure that an anticipated bill of inheritance tax is covered. However they must always be written to fall outside of an individual’s estate to ensure they are readily available to settle IHT payments due when a person dies.
Experienced wealth managers can help clients assess what level of protection they require and advise on the best policy for their situation, sparing their family the worry of selling assets to pay IHT bills at a vulnerable time.
If you need an independent financial advisor in Chester to help answer your concerns about IHT with tax-efficient strategies, contact our team at Hartey Wealth Management today.