Many people will amass various assets throughout their lifetime, from property and personal effects through to savings. In an ideal world, these would simply be passed down to relatives and close personal friends. However, bequeathing an estate to descendants or associates creates a variety of tax implications and legal complications, which many people fail to plan for during their lifetime.
The process of estate planning is a necessary step towards ensuring that minimal taxes (or other related expenses) are deducted from a deceased person’s estate. Select Investment Managers appreciate the importance of leaving financial affairs in good order, and our highly-trained professionals will approach each unique situation with a suitable blend of delicacy and determination. Our focus is always on achieving the most tax-efficient solutions while working in the best interests of the client, such as recommending ways to minimise inheritance tax. By making use of annual exemptions, available reliefs, lifetime gifts, pensions and trusts, IHT liabilities can be minimised or even eliminated.
At its simplest, estate planning involves creating a will and appointing an executor or power of attorney, to ensure that any stipulations are met. However, estate planning can also extend into areas like creating a trust, which can reduce taxes by setting aside funds for a long-term income stream on behalf of named beneficiaries. Estate planning may even involve deciding on funeral arrangements, or naming a guardian to look after living dependants.