Later in life
Although the level at which inheritance tax becomes payable was increased recently so that it is now possible to transfer any 'unused' allowance from one spouse (or civil partner) to the other, the 40% tax will continue to impact on many families because combined estates of more than £650,000 are still affected. To put this into context, an estate of £1,000,000 could result in more than £150,000 being taken in tax. That means a 15% reduction for the family.
Fortunately, it is possible to plan your estate in order to reduce the impact of inheritance tax through the use of trusts and life insurance.
For some couples, of course, the problems faced later in life can be quite different; they may have an expensive home but limited income. This can result not just in difficulty in covering the cost of essential repairs and other living expenses, but also an inability to provide financial support for children and grandchildren.
Fortunately it is possible to release cash from your home through what is called "Equity Release" schemes. There are various types and we would be pleased to provide details on request. Most importantly, using equity release can be a good way of reducing the effective size of your estate in a controlled way and can thus be used as a way of inheritance tax mitigation.
There can also come a time when the need arises for a high level of personal care. This can be very expensive indeed, with costs as high as £1,000 a week not being uncommon in some areas. This can be a worry for older people and their families. However schemes exist that can provide a high level of security for the payment of care fees.
For more information about how Dawson Whyte (Life & Pensions) can help you, please click here.
Financial planning
Building a better future
Buying your home
Protecting your family
Protecting your income
Planning for retirement
Pension transfers
Options at retirement
Medical care for the family
Later in life
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