Heidi Hirsh, RICP®,ChSNC®’s Post

How to Protect Your Legacy: 5 Effective Inheritance Tax Strategies 💼   Inheritance tax (IHT) planning can feel overwhelming, but it doesn't have to be! While the topic may seem complex, there are effective strategies you can implement to reduce the impact of inheritance tax on your estate. 🏡💰   In the second of our three IHT related articles 'Inheritance Tax: 5 shrewd strategies for reducing a potential bill' discover ways to help minimize your inheritance tax liabilities. From making the most of your annual allowances to charitable donations, these approaches can ensure that more of your wealth is passed on to your loved ones. Whether you're just starting your estate planning journey or reviewing your current plans, these tips can provide valuable guidance. Remember, the earlier you start planning, the more options you'll have to protect your family's future. 📊 Don’t miss out on our weekly posts here on LinkedIn, where we share a selection of articles from our blog series. You can find all this month’s articles on our website, or if you want to receive our articles as soon as they’re published, subscribe to our monthly newsletter by sending an email to info@bespokeifa.co.uk. We’d love to hear your thoughts in the comments!   #InheritanceTax #FinancialPlanning #WealthManagement #EstatePlanning #NewArticles #BespokeBlogSeries https://lnkd.in/eNHEV7yY

🧭 Navigating the Complexities of Inheritance Planning   As we accumulate wealth, safeguarding it for future generations becomes a priority. Effective Inheritance Tax (IHT) and estate planning can protect your loved ones while minimising tax burdens.   💡 Should You Consider Gifting?   One question we frequently get is whether to gift assets now or wait. Gifting during your lifetime can reduce your estate's value and the potential IHT burden. However, it requires careful consideration of timing, amount, and tax regulations. Make sure it aligns with your long-term goals!   🏡 Understanding Inheritance Tax (IHT)   IHT is due after death on estates above the thresholds (£325k NRB, £175k RNRB). HMRC charges a 40% tax. Gifting assets to family while you’re alive or leaving at least 10% of your estate to charity can reduce this to 36%.   🔑 Annual & Small Gifts Allowances   Under current rules, you can gift £3,000 per year (your ‘annual exemption’). You can also give smaller gifts of up to £250 to as many people as you like each year, provided no one receives more than £250.   🌱 Planning for the future involves strategy and care. Contact us to explore how you can maximise your legacy while reducing potential IHT liabilities for your loved ones.   https://lnkd.in/d5xAvjQR If you would like to talk about your options, please feel free to contact us. We would love to hear from you https://lnkd.in/eez8Waqx   #InheritancePlanning #EstatePlanning #WealthManagement #InheritanceTax #FinancialPlanning #IntergenerationalWealth #TaxEfficiency #LegacyPlanning #GiftingStrategy #WealthPreservation  

Data recently released by HMRC reveals that inheritance tax receipts for the period April 2024 - June 2024 hit £2.1 billion, an increase of £83 million on the same period last year. Is this a surprise? Not really - the nil rate band has remained at £325,000 since 2009 and the residence nil rate band (worth potentially up to £175,000) is also frozen until 2028. Given inflation and the general upward trajectory in the value of property inheritance tax receipts are only likely to increase. If you or your clients would like a review of your exposure to inheritance tax and how this might be mitigated please do not hesitate to get in touch with me or one of my colleagues at Tees 💡 You might want to have a think about: - Lifetime gifts to children and grandchildren - Trusts - Charitable giving - Tax efficient Wills - Wealth management - Taking full advantage of your capital tax reliefs #privateclient #inheritancetax #successionplanning

Are your parents or elderly relatives looking to you for advise on how to invest their lifetime savings? Are you a beneficiary of a will? Make sure you take expert advise Tees can help

💼 Understanding Inheritance Tax in the UK 💼 Inheritance tax (IHT) is an important consideration for individuals planning their estates. In the UK, IHT is charged on the value of an estate above the £325,000 threshold (known as the nil-rate band), at a rate of 40%. Here are some key points to remember: • Residential Nil-Rate Band (RNRB): If you leave your home to direct descendants, you may be eligible for an additional allowance, up to £175,000, bringing the potential total exemption to £500,000 for individuals. • Gifts and Exemptions: You can gift up to £3,000 each year without it counting towards your estate’s value, and there are additional exemptions for gifts to charities or on special occasions. • Spouse and Civil Partner Exemption: Transfers between spouses or civil partners are exempt from IHT, meaning one partner can leave their entire estate to the other without incurring tax. Planning ahead can help reduce the IHT liability and ensure that more of your estate goes to your beneficiaries. The information above is a simplified summary of inheritance tax and how it works so I recommend you speak to a financial planner to explore your options. #InheritanceTax #EstatePlanning #FinancialPlanning #TaxEfficiency

Inheritance Tax Strategies: Trust Arrangements When considering inheritance tax, trust arrangements can offer a powerful solution to protect and manage your family’s wealth. At Crownhouse we can advise on the different types of trusts that are available depending on whether you are looking for flexibility, simplicity or preserving capital for future generations. Trusts established by grandparents can provide tax efficient finance for a grandchild’s education.. Here’s how trusts can benefit your inheritance tax planning: - Tax Efficiency: Trusts can help minimise inheritance tax liabilities, ensuring more wealth is preserved for future generations. - Control & Flexibility: Establishing a trust allows you to set specific terms for how and when your assets are distributed, providing control tailored to your family's needs. - Asset Protection: Trusts can safeguard assets from various claims, ensuring your wealth remains intact. - Succession Planning: Trusts facilitate smooth generational transfers, avoiding probate delays and maintaining family harmony. - Charitable Trusts: Reduce inheritance tax by donating to charitable causes, creating a lasting legacy. Working with experienced advisors ensures your trust arrangements are compliant with current laws and tailored to maximise tax efficiency. Connect with us to explore how trusts can enhance your inheritance tax strategy. # Crownhouse #InheritanceTax #TrustArrangements #WealthManagement #EstatePlanning #FamilyWealth #TaxEfficiency #LegacyBuilding #FinancialPlanning #UKTaxPlanning

Planning for a family wedding? Did you know parents can gift up to £5,000 and grandparents up to £2,500 without triggering inheritance tax? Gifts out of surplus income are also allowed without impacting the donor's standard of living. https://ow.ly/P71150Tr55E #inheritancetax #financialplanning

The New Jersey inheritance tax is a state tax imposed on the transfer of assets from a deceased person to their beneficiaries, depending on the relationship between the deceased and the recipient. Unlike the federal estate tax, which is based on the total value of the estate, the New Jersey inheritance tax focuses on the individual beneficiaries and their respective shares of the estate. Key Aspects: Classification of Beneficiaries: Beneficiaries are divided into different classes, and the tax rate varies according to the class. Class A: Exempt from inheritance tax. This class includes spouses, domestic or civil union partners, parents, children, grandchildren, and stepchildren. Class C: Includes siblings, sons- and daughters-in-law. They are taxed on inheritances over $25,000, with rates ranging from 11% to 16%. Class D: Includes all other beneficiaries, such as friends or distant relatives. They are taxed on the entire inheritance, with rates ranging from 15% to 16%. Class E: Charitable organizations, educational institutions, and some others are fully exempt from the inheritance tax. Exemptions: Inheritance transfers to a spouse, domestic partner, children, and certain other close relatives are exempt. Certain assets, like life insurance payouts to specific beneficiaries, are not subject to the tax. Tax Rates: The tax rates range from 11% to 16%, depending on the beneficiary's class and the amount inherited. The tax must be paid before assets are transferred to beneficiaries, and it applies only if the deceased was a New Jersey resident or owned property in New Jersey.

The New Jersey inheritance tax is a state tax imposed on the transfer of assets from a deceased person to their beneficiaries, depending on the relationship between the deceased and the recipient. Unlike the federal estate tax, which is based on the total value of the estate, the New Jersey inheritance tax focuses on the individual beneficiaries and their respective shares of the estate. Key Aspects: Classification of Beneficiaries: Beneficiaries are divided into different classes, and the tax rate varies according to the class. Class A: Exempt from inheritance tax. This class includes spouses, domestic or civil union partners, parents, children, grandchildren, and stepchildren. Class C: Includes siblings, sons- and daughters-in-law. They are taxed on inheritances over $25,000, with rates ranging from 11% to 16%. Class D: Includes all other beneficiaries, such as friends or distant relatives. They are taxed on the entire inheritance, with rates ranging from 15% to 16%. Class E: Charitable organizations, educational institutions, and some others are fully exempt from the inheritance tax. Exemptions: Inheritance transfers to a spouse, domestic partner, children, and certain other close relatives are exempt. Certain assets, like life insurance payouts to specific beneficiaries, are not subject to the tax. Tax Rates: The tax rates range from 11% to 16%, depending on the beneficiary's class and the amount inherited. The tax must be paid before assets are transferred to beneficiaries, and it applies only if the deceased was a New Jersey resident or owned property in New Jersey.

Inheritance tax planning is an important consideration for those with sizable estates. Here are some key strategies to minimize inheritance taxes: Maximize gifting during your lifetime to reduce your taxable estate. In 2024, you can gift up to $18,000 per recipient without triggering gift taxes. Married couples can gift $36,000 per recipient. This allows you to transfer wealth tax-free while alive. Set up trusts to remove assets from your taxable estate. Irrevocable trusts in particular can shelter assets from estate taxes upon your death. If you inherit a traditional IRA from someone other than your spouse, transfer it to an inherited IRA and take distributions based on your life expectancy to spread out the tax burden. Consider donating appreciated assets to charity to avoid capital gains taxes and receive an income tax deduction. Utilize the alternate valuation date if it reduces the value of the estate and associated taxes. The executor can choose a date 6 months after death if asset values declined. A few states levy an inheritance tax paid by beneficiaries, with exemption amounts and rates varying based on the relationship to the deceased. Strategies like setting up trusts can help minimize state-level inheritance taxes as well. $600 revocable living trust free retirement income analysis Connie Dello Buono 4088541883 investment Fiduciary