Passing Down Wealth

It’s never too early to think about estate planning. As soon as you have savings, property or other assets to consider and/or loved ones who would need looking after when you’re gone, it’s time to start thinking about a plan for your estate.

Most experts agree that an estate plan should be updated every 3 to 5 years. It should also be revisited if you fall ill, or whenever there is a change in your circumstances, such as buying a new house.

When estate planning you’ll want to balance a variety of considerations: your financial requirements now, and what you expect them to be throughout the rest of your life; how the value of your assets may change over your lifetime; the current and possible future needs of your loved ones. Balancing these considerations will help determine when and how to pass on your assets to your beneficiaries.

An estate plan is more complex and comprehensive than a will. A will sets out what will happen with your family, property and other assets after you die. An estate plan includes a will, but also looks at your finances more comprehensively, including aspects such as establishing trusts and planning for care costs.

Legacy planning and estate planning are related and complementary, but different in focus. Estate planning focuses on the financial aspects of your assets, such as property and investments, and making sure they’re distributed according to your wishes. It also involves being as efficient as possible in terms of taxes, to preserve as much of your wealth as possible for your beneficiaries. Legacy planning goes beyond purely financial considerations. At Investment Quorum, we can help you further your legacy through ethical investments and charitable donations to causes you believe in.

The rules around Inheritance Tax planning are complicated.  We recommend that you always obtain professional advice when considering your options. For a general introduction, you might have a look at our article, 5 Tips for Reducing Inheritance Tax.