Among the services offered by wealth management teams is estate planning, helping clients prepare financially for the end of their life and assisting those they leave behind. A key concern is often the inheritance tax (IHT) bill which must be paid on a person’s estate when they die when it exceeds a predetermined threshold. Wealth managers help their clients to reduce the size of IHT bills and, in some cases, eliminate them entirely.
It is not always easy to entirely mitigate a future tax bill, as few can be sure what their life will bring and how much wealth they will need or accumulate.
One option to prepare is to obtain a life-assurance policy that involves the sum assured able to cover the anticipated IHT bill. This can spare a person’s family the stress of needing to sell assets to make payment. Calculating a potential tax bill is not always a simple tax, but with an understanding of all the assets which can be counted as part of an estate and the legislation covering IHT, financial advisors like wealth managers can offer expert support.
While such cover can be an effective tactic, to work, the policy must be written in trust. This can ensure that a pay-out will always fall outside of the person’s estate for IHT purposes. As a result, money is easily available for the executors of a person’s will to help settle their estate.
Reach out to our team today at Hartey Wealth Management for financial advice in Chester.