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Family funding


Start planning your inheritance early and save your offspring thousands in tax

by Webmaster, 1st June 2022

Start planning your inheritance early and save your offspring thousands in tax

Thirty million parents intend leaving wealth in their will, yet less than 50% have written one.  Not writing a will, or completing estate planning, may result in significant Inheritance Tax (IHT) being levied on your estate.

What isn’t exempt will be taxed. IHT may be paid on money, possessions and your share of any property, reducing amounts passed to beneficiaries. 

Tax year 2022/23 started on 6 April 2022 and ends on 5 April 2023 and IHT is £325,000. If your estate exceeds this amount, anything not exempt will be taxed at 40%. 

How Parents Plan to Pass on Wealth:

A Will 88%

Bank transfer/cash 67%

Consulting financial adviser 57%

Writing into trust 56%

Putting into investments 53%

Putting into a pension for their children 43%.

Minimising IHT exposure.

Mass affluent consumers; those with assets between £100,000 - £500,000, excluding property, are more likely to have their affairs in place to pass on their wealth. 

51% of mass affluent parents have a will; 20% put money into an investment for their beneficiaries, 17% sought professional financial advice on the best ways to pass on wealth and 13% have written wealth into trust. 

The average amount written into trust was £184,000. 

56% are considering writing wealth into ‘trust’. 12% have done so.

Seek professional financial advice on the best ways to pass on your wealth – sooner rather than later! 

The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP.  Tel: 0808 168 5866.  www.harteywm.co.uk  Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority 

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