Estate/IHT Planning

Having the proper estate plan is an important process that many people overlook. Most people assume that their estates (e.g. property, possessions, money and investments) will automatically pass to their spouses or heirs even if they die ‘intestate’ (without having made a will). However, this is not necessarily true.

If you are not married your partner will receive nothing. Even if you are married and there is no will, other people, such as relatives, can make a claim on your estate, which could prolong the distribution of your assets or, worse, distribute them to someone else rather than to those whom you intended.

Inheritance Tax
One thing that you may unintentionally distribute to your partner is an Inheritance Tax (IHT) liability. This tax is paid on your estate. Broadly speaking this is everything you own at the time of your death, less what you owe. It's also sometimes payable on assets you may have given away during your lifetime.

However, not everyone pays IHT on death. It only applies if the taxable value of your estate (including your share of any jointly owned assets and assets held in some types of trusts) when you die is above the IHT threshold. This tax applies to the excess amount above the nil rate band. Certain exemptions apply so check with your solicitor regarding the exemptions.

Preparing now can make all the difference later. Whilst Edward Jones, its employees and financial advisers do not offer legal or tax advice, we can work with your solicitor to develop appropriate strategies that can help distribute your estate as you intend whilst reducing the IHT liability.

*Edward Jones, and its employees, are not estate planners and cannot offer tax or legal advice.