A good wealth management strategy involves looking to the future - and however unpleasant it may seem, that includes the entire span of your life, right up to your death.

When you have worked hard all your life to create personal wealth or build assets, it's important to know that this will be appropriately distributed after you have gone. Inheritance tax and estate planning allows your family and loved ones to benefit from your hard work, without facing huge losses through inheritance tax.

By dealing with the administration of your estate now, you will save your nearest and dearest a lot of stress and hassle at a time when they could really do without it. For expats with cross-border estates, it is even more vital to simplify the inheritance process.

Distributing Your Legacy

In order to ensure that you have taken the appropriate measures, it is essential to seek professional advice - Guardian Wealth Management can offer tailor-made solutions to help your loved ones gain the best benefits from your legacy.

Depending on your specific circumstances, there are a variety of ways in which you can reduce your inheritance tax liability and take advantage of potential exemptions and tax breaks.

In the decade since 2000 inheritance tax rates have risen by over £100,000 to £325,000, with amounts above threshold taxed at a rate of 40%. This can make for a significant tax bill, reducing the amount of inheritance that your loved ones will receive.

Say, for example, that the value of your estate is £100,000 over the tax exemption threshold. This means that upon your death, your estate will be liable to pay 40% on the £100,000 that exceeds the exemption level - this means that HMRC will receive £40,000 from your estate, money that your

This illustrates the importance of keeping a check on the combined value of all your assets and savings, otherwise your family and loved ones may have a very high and

Inheritance tax may seem unfair, especially when you consider that you have been paying tax on your earnings and assets for the duration of your life. The best way to

reduce this tax liability is to take professional

advice as soon as possible, in order to protect your a s s e t s a n d

investments.

What Inheritance

Tax

Inheritance tax has existed in the UK since the 1700’s. As with most other legislations, details and thresholds are constantly being revised, but one thing seems certain - inheritance tax will continue to be a fact of life that we all need to prepare for.

beneficiaries will lose out on.

unexpected bill to pay.

When dealing with any aspect of your wealth management strategy, you should always be looking at the various solutions

open to you in order to decrease your tax liability and get the best return on

your investments.

This principle is exactly the same when it comes to

inheritance tax planning - the only real difference is that death is an emotive subject which we tend

to avoid discussing, especially with our

families.

While it may be a difficult matter to

broach, is it really worth the additional expense and liability

that avoidance could cost your loved ones?

By sitting down and discussing your inheritance tax plans with one of our financial advisors,

we will be able to assess your individual situation and take

into account all of your personal wishes, in order to

find the most appropriate solutions for your estate

planning.

Inheritance Tax & ExpatsThe boundaries and definitions regarding residence and domicile can be quite complex; you may live in another country, yet still be a domicile of the UK - in which case your estate will very likely fall under UK inheritance tax laws.

In order to acquire a new domicile, you need to be able to show that you do not intend to return to your domicile of origin and that you plan to spend the rest of your life living in your new domicile of choice. If you decide to take this step, you must consult with a professional who can give you clear advice first.

The good news is that you don't necessarily need to make this major change to reduce your inheritance tax liability. On the other hand, even if you do change your domicile of choice, in some situations you may still have to pay inheritance tax in the UK.

It is clear to see that matters of estate planning and inheritance tax are particularly complex for expatriates, so speak to one of our independent advisors at Guardian Wealth Management to ensure that you fully understand the implications of your individual circumstances.

If you have settled in another country and you are living abroad as an expat, you may think that UK inheritance tax laws do not apply to you - this is a big mistake that could cost your family dearly. Even if you are an expat living abroad, if you still hold ownership on any property within the UK, you could find that your entire estate is liable for UK inheritance tax.

This is down to legal definitions and how this affects your inheritance tax liability. It all boils down to whether your status in another country is regarded as residence or domicile.

Making Your

Inheritance Plans

If you think that neglecting your inheritance tax planning will simply

mean that the executor of your estate will just have to make a

payment from your capital, you need to be aware that there can

be much heavier potential repercussions.

If your beneficiaries are faced with a big inheritance tax bill, they may be forced to sell your physical assets quickly in order to meet payment - this can result in having to take a big cut in the amount of money they receive, selling something for far less that its real worth. In the worst case scenario, your family or loved ones may be forced into a position where they have to sell something that has great sentimental value, a house that has been part of your family for years for example, in order to pay the relevant fees.

One of the most important things that you need to think about is how to reduce your inheritance tax liability in compliance with the law. By taking care of your estate planning as soon as possible, you can ensure that your capital, property, investments and any other assets are managed in a way that will legally reduce or completely cancel out the tax liabilities that can occur as a result of your death.

Our financial advisors at Guardian Wealth Management will talk you through a variety of options and solutions that you can take advantage of in order to put your family and loved ones in the strongest possible financial position after your death, such as:

Writing a will - whether you are in the UK or an expat living abroad, the first thing you should do in order to organise your estate is to write a will. Without one, your intended beneficiaries will lose a large portion of your assets to the government and you won't be in control of who receives what from your estate.

What is more, for expats who own a property or investments in several different jurisdictions, it is essential that your will is recognised in each country where you have an interest. Sometimes, this means having more than one will - our advisors can help you to get the right wills in place.

Trusts - If you own properties, it may be worth considering putting them in a trust. This means that you can assign the benefits from the property to a nominated person, in order to reduce your inheritance tax liability, while still having a say in how the property is distributed upon your death.

Gifts - While making a gift from your estate may sound simple, you must get professional advice in order to ensure that it has a positive impact on your inheritance tax liabilities.

Because liability is measured on various factors, such as how long ago the gift was made, who it was made to and for what reason, you need to ensure that you have managed your donations correctly. It is important to understand that by making a gift, you are no longer entitled to benefit from that particular asset.

By using a combination of solutions our advisors here at Guardian Wealth Management can reduce your liability and ensure a brighter future to your family - all in complete accordance with the law.

Using Your Time Wisely

If you feel you might have left your inheritance tax planning too late, do not worry – there are still plenty of options that you can consider to help get your estate in order. That said, the sooner you start making plans the better - especially as it might take you a while to commit to what can be a long term decision.

HMRC is a powerful force and has access to up to 7 years of your financial matters, in order to identify any activity that could be liable for inheritance tax. They can also look into any schemes or gifts that you have organised to see if you had continued to benefit from assets that you had dec la red to have passed on.

This means that clear advice from an experienced financial advisor is essential - acting without this or getting poor quality advice can lead to misinterpretation of the law, resulting in your beneficiaries facing a long, drawn out investigation into the affairs of your estate.

Sharing the Burden

Guardian Wealth Management has partnered with a leading law firm, Irwin

Mitchell, to offer you a wide range of high quality legal services for both your

personal and business legal issues. We understand that when you need legal

advice, you want to speak to someone in the know, a reputable firm with a

trustworthy brand that offers transparent pricing and a pro-active approach. That

is why we have partnered with Irwin Mitchell, a well established firm to give

you the support and guidance you need at times in your life where legal assistance

is needed.

If you would like us to help you leave the best possible inheritance for your family, without any unnecessary stress, please

feel free to contact us now.

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