Estate planning advice

Worried about inheritance tax eating into your estate? We’ll help you leave more to those you love most.

Where do you want your wealth to go?

Although it’s not nice to think about, getting your affairs in order for when you pass away can bring real peace of mind as you get older.

Estate planning is about making sure that all the things you own – whether it’s property, savings or investments – are passed on efficiently and in line with your wishes when you die. 

Making a will is a key part of estate planning, but it’s really only the start. Without careful consideration of the financial impact, you could be leaving a big inheritance tax burden behind.

That’s one thing you definitely don’t want your loved ones to inherit. 

Please note The Financial Conduct Authority does not regulate inheritance tax planning and trusts.

Inheritance tax planning

Known as ‘a tax for those who don’t plan’, inheritance tax (IHT) can take a huge chunk out of the value of your estate.

If your estate is worth more than £325,000 (the inheritance tax threshold or ‘Nil Rate Band’), anything above this amount could potentially be taxed at 40%.

For many people, simply owning their own home may be enough to put them over that threshold.

A helping hand

If you’re smart with your money – and start thinking about estate planning sooner rather than later – there are ways to help minimise inheritance tax. These could include:

  • Making gifts to family and friends before you die
  • Setting up a trust fund for those you want to benefit from your estate 
  • Putting your life and pension policies into a trust so they’re not included as part of your overall estate.

A Wesleyan Financial Services Consultant can advise you. If you’d like to learn more about inheritance tax before getting advice, you can read our guide to inheritance tax.

Estate planning explained

In this short video, we explore the process of estate planning and the things that you might need to consider as you prepare for your financial future.

The common misconceptions around estate planning

  •  “Inheritance tax is only payable on death” 
    As well as being assessed on death, inheritance tax is also payable on some lifetime gifts. For instance, money or assets put into discretionary trusts will be subject to inheritance tax at 20% on amounts that, over a seven-year period, exceed the £325,000 limit. The same rule applies to lifetime gifts to your spouse if he or she is not domiciled in the UK.
  • “I can give my children my home to get it out of my estate”
    If you give away your home, but carry on living in it without paying market-value rent, it is classed as a ‘Gift with Reservation of Benefit’. Although you don’t own it, its value will still be included in the inheritance tax assessment on your estate. You can’t sell the property to your children way below market-value either – the difference in value would be counted as a gift.
  •  “Overseas property is not counted for UK inheritance tax”

    Again, not true. If you are domiciled or deemed domiciled in the UK, all your worldwide assets are included in your estate for UK inheritance tax.

    Speak to a Wesleyan Financial Services Consultant and they’ll help you understand what your inheritance tax liability could look like – and how best to minimise its impact.

Why choose Wesleyan for estate planning advice?

Personalised advice

When you meet with a Wesleyan Financial Services Consultant, you can expect personalised advice from someone who understands your financial needs.

Depending on your profession, we’ll usually pair you with a Financial Consultant who specialises in your sector. That means they can also assist with any queries around how and when to pass your business on, as well as your personal estate.

Looking at the bigger picture

We know your financial situation is unique to you, so we tailor our meetings to your individual needs and goals.

Through a full review of your finances, we help you assess how you can start reducing your inheritance tax liability now, while maintaining access to the funds you need for a prosperous later life.

With estate planning, it’s always important to consider your future expenses –like the potential cost of care as you get older. If you tie all your money up in trust funds or give it all away as gifts to avoid inheritance tax, you could leave yourself short of the funds you need in retirement.

It’s a tricky balance, but one we can help you achieve.

Frequently asked questions

  • Is the advice free?
    There’s no charge for the meeting itself – you’ll only pay an advice fee if you decide to take out one of Wesleyan’s products or services as a result of the conversation. Our Financial Consultants will often make a recommendation for you, but there’s absolutely no obligation for you to take out any Wesleyan products.
  • What should I prepare ahead of the meeting?
    To make the most of your time with your Financial Consultant, it can be handy to gather any information or documents relating to your finances. This can help to give your Financial Consultant an understanding of your assets and liabilities.
  • How long does the meeting last?
    An initial meeting with a Financial Consultant will typically last around one hour, though it does depend on the complexity of your circumstances. Often the Financial Consultant may arrange a second meeting with you to present any recommendations.
  • How soon will I be able to get a meeting?
    You won’t usually have to wait long at all. Request your appointment today and we should be able to get you a meeting with a Financial Consultant within the next ten days or so.

Want to learn more about estate planning? Watch our webinar…

Watch our free webinar to help improve your understanding of the key issues around estate planning and inheritance tax.