McCrea Financial Services.

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McCrea Financial Services.

Scottish Seniors
1 November 2022
With almost 4% of UK adults leaving an inheritance tax bill for their loved ones after passing away, careful estate planning is something we can all consider to protect our nearest and dearest when the time comes.

Of particular value to homeowners, business owners and those in possession of assets such as bank savings, investments, pensions and second homes, proactive estate planning allows you to capitalise on the allowances available. It can also prevent an unexpected shock while your family are grieving, as many families liable to pay inheritance tax never expect to find themselves in such a position.

In the UK, the Nil Rate for inheritance tax applies to the first £325,000 of the deceased’s estate. Leaving your home to a child or grandchild can add up to £175,000 to that Nil Rate, meaning that an individual person may pass on an estate valued at up to £500,000 before it is liable for inheritance tax. Should an estate exceed the Nil Rate Band, the portion of the estate which exceeds it will be taxed at 40%. These thresholds were set out in the 2021 Finance Bill and are fixed until April 2026.

Inheritance tax receipts are now at a record high, with HMRC reporting £6.1 billion collected in tax year 2021/22 – an increase of 14% on the previous year. The freezing of the Nil Rate Band and long-term asset growth among older generations, particularly those who have benefited from growth in house prices, have exposed more estates to inheritance tax liability.

With complex rules in place governing the gifting of money and assets to loved ones up to seven years before death, the transfer of allowances between spouses and civil partners, the use of protected trusts and tax relief on certain donations to charities and registered clubs, professional advice is crucial.

As one of Scotland’s foremost Independent Financial Advisers, McCrea Financial Services offer estate planning services which integrate with your overall financial goals and circumstances. Drawing on their award-winning expertise in pensions and retirement planning, they can help you manage your estate in a way which allows you to live the life you want to live now while protecting your loved ones in the future.

Graphical user interface, website  Description automatically generatedTheir friendly team are happy to answer any questions you might have about whether estate planning is right for you. Why not give them a call on 0141 572 1340, or email to find out more about their award-winning personalised service?

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