JMS Financial Services

Organise how much you could leave for the people you care about

Inheritance Tax can cost families thousands of pounds but there are various ways to legally avoid paying this tax. Without making suitable plans, your loved ones could face a tax bill of 40% on the value of everything you own above a certain threshold.

Continue reading “Making suitable plans”

The earlier you put plans in place the more options you may have

With careful planning it may be possible to reduce significantly the need for your estate to pay Inheritance Tax. We spend a lifetime generating wealth and assets but not many of us ensure that it will be passed to the next generation – our children, grandchildren, nieces, nephews, and so on. Intergenerational wealth transfer is the passage of wealth from one family generation to the next.

Continue reading “Increased net worth and rising mortality rates”

Balancing your plan with other financial priorities is key

Making provision for Inheritance Tax needs to be balance the plan with your other financial priorities is key. Effective estate preservation planning could save a family a potential Inheritance Tax bill amounting to hundreds of thousands of pounds.

Continue reading “More families subject to Inheritance Tax”

Three in five UK adults have not made provision

It’s important to make sure that after you die, your assets and possessions go to the people and organisations you choose, such as family members and charities you want to support.

Continue reading “Making a Will”

Passing on your wealth in the right way is key for its preservation

The introduction of the Residence Nil-Rate Band (RNRB) has made it easier for some individuals to pass on the family home. The rise in property prices throughout the UK means that even those with modest assets may exceed the £325,000 Nil-Rate Band (NRB) for Inheritance Tax.

Continue reading “Inheritance Tax Residence Nil-Rate Band”

Giving away money from your estate to reduce your Inheritance Tax bill

Read more: https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-planning-and-tax-free-gifts-aw1mb2n7snwx – Which?

Continue reading “Lifetime transfers”

Considerations when making a Will

Thinking about death isn’t easy. Talking about it is even harder. The reality of our own mortality is a tough subject, but a discussion will ensure your assets are left to the right people.

Continue reading “Leaving your legacy behind”

‘Ring-fencing’ assets to protect family wealth for future generations

Trusts are used to protect family wealth for future generations, reducing the inter-generational flow of Inheritance Tax and ensuring bloodline protection for your estate from outside claims. The way in which assets held within Trusts are treated for Inheritance Tax purposes depends on whether the choice of beneficiaries is fixed or discretionary.

Continue reading “Trusts”

Held for the benefit of a specified beneficiary

Bare Trusts are also known as ‘Absolute’ or ‘Fixed Interest Trusts’, and there can be subtle differences. The settlor – the person creating the Trust – makes a gift into the Trust which is held for the benefit of a specified beneficiary. If the Trust is for more than one beneficiary, each person’s share of the Trust fund must be specified.

Continue reading “Bare Trusts”

Wide class of potential beneficiaries

With a Discretionary Trust, the settlor makes a gift into Trust, and the trustees hold the Trust fund for a wide class of potential beneficiaries. This is known as ‘settled’ or ‘relevant’ property. For lump sum investments, the initial gift is a chargeable lifetime transfer for Inheritance Tax purposes.

Continue reading “Discretionary Trust”