Private Wealth Matters by DMH Stallard

Guarding your legacy with asset protection

Guarding your legacy with asset protection
In England & Wales we have apparent testamentary freedom, however, freedom to leave your estate as you wish does not always mean you can control how assets are ultimately distributed, particularly in the longer term. Poor planning can lead to unforeseen circumstances and sometimes unwanted and undesirable consequences.
People are living longer and often have more than one long term relationship in their lives. The rise in blended families is one of the reasons why asset protection is an important part of estate planning and wealth management. A common example is a desire to see a partner is provided for during their lifetime while still ensuring your assets are ultimately passed to your own children and grandchildren.
There may also be concerns about future care costs, claims that may be brought against an estate after your death or concerns about vulnerable beneficiaries.
Outright gifts of property by Will or lifetime transfers may not always have the desired effect. Once an asset is gifted absolutely, control is lost. Assets can be brought back into an estate for the purpose of satisfying claims and meeting care costs in certain circumstances.
As life can be unpredictable, planning in a way that provides flexibility for a variety of circumstances is sensible. Flexible Life Interest Trusts are one of the most common ways to achieve asset protection but there is no one size fits all solution. Careful advice will be needed from legal and financial professionals to ensure your estate is structured in a way that achieves the outcome you desire.
In this episode, Jenny Ray speaks with succession planning specialist, Nadia Cowdrey about ways to protect your assets.

Merry and Mindful: tax efficient giving explained

Merry and Mindful: Tax-Efficient Giving Explained
We are witnessing an historic shift in wealth; the great wealth transfer taking place is expected to see around £5.5 trillion passed down from one generation to the next by 2050.
We are also seeing record inheritance tax (IHT) receipts. IHT is effectively a death duty levied on the total value (less any liabilities, exemptions and reliefs) of an estate at the time of death.
IHT is usually paid at a rate of 40% on the value of an estate above a threshold of £325,000. This threshold was set in 2009 and is frozen up to 2028. It is no surprise therefore that people are looking to explore ways of passing on their wealth in a tax efficient way. Charitable giving through Wills is also something professional Will writers are increasingly seeing. However, giving is not always straightforward and can lead to disputes, it requires careful planning, professional advice and good record keeping to ensure the donor’s wishes are fulfilled and tax reliefs and exemptions are fully utilised.
In this episode Jenny Ray speaks with tax and succession planning specialist, Ingrid McCleave about effective and tax efficient giving.

Inheritance Act claims and the myth of the 'watertight' Will

Inheritance Act claims and the myth of the 'watertight' Will
In this episode, our Private Wealth experts discuss disputes in Wills and the myth of the ’watertight’ Will, as well as giving some helpful tips on what you can do to minimise the likelihood that your Will is contested after you’ve gone.
Wills disputes are increasing year on year in the UK, the reasons for this are varied and complex. The increasing size of the population aged over 60 years, the rise of the blended family and the dramatic impact rising house prices have on the value of an estate all play a role in the upsurge of contested Wills.
The types of dispute that can arise are varied including claims that a Will has not been validly executed, claims that the person making the Will did have the appropriate capacity to make a Will and claims that there has been undue influence or coercion hampering an individual’s testamentary freedom are all commonly made.
The Inheritance (Provision for Family and Dependents) Act 1975 also enables certain categories of people to bring a claim in relation to an estate where there is a valid Will if they have not been left reasonable financial provision.
Our experts discuss why not all will disputes can be prevented and provide tips and insight into what you can do to reduce the risk of a dispute arising in your estate after you have gone.
Hosted by Contentious Probate Partner Jenny Ray, with Private Client Associate Hannah Worricker joining the discussion to share her valuable insights.