Wealth Preservation

What is it?

Attacks on individual personal wealth come from many different directions, and having spent a lifetime building up this wealth, it probably makes sense to defend it from such attacks.

Inheritance tax (IHT) and the funding of long term care (LTC) could drain an estate of most if not all of it’s value.

Who may need it?

Anybody whose estate is valued at more than £300,000 (Tax Year 2007/2008) may affected by Inheritance Tax and it appears to be affecting.

In addition, the burden on the individual to fund their own nursing home fees in certain circumstances could make dramatic demands on an estate. If that individual has savings above certain modest limits they may be required to contribute to the cost of nursing home care – Which could cost upwards of £500 per week.

How might you calculate it?

A valuation of the entire estate, including insurance and pension benefits, could need to be undertaken to enable a calculation of the cost of potential IHT.

What else might I need to know?

Planning to help ease the burden of inheritance tax and the impact of funding nursing home fees may be as simple as ensuring wills are correctly drafted through to making complicated trust and insurance arrangements. The current taxation climate offers many ways of mitigating potential inheritance tax problems, but in some cases may lead to other taxation burdens such as capital gains tax.

The choices may appear complex and we would always recommend that you seek expert independent financial advice

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