Estate Tax Advice Posted As Thousands Agree With Daniel Craig: Estate Planning Tips | Personal Finances | Finance
Inheritance tax has been in the spotlight recently as Daniel Craig has said he will not leave his fortune to his children. While this may be seen as the exception to the rule by some, new research on succession plans shows that many are in agreement with the James Bond star.
Sarah Coles, Personal Finance Analyst at HL, commented: “It’s not just Daniel Craig: almost one in five people don’t plan to leave most of their money with their children when ‘they die. Some have made smart planning decisions for the benefit of their whole family, while others just want to enjoy the money while they’re still here.However, there is a risk that some parents will interrupt their children to resolve problems that can be cured much more effectively.
“Leaving an inheritance for your children is not totally dead. The vast majority of people want their children to benefit from the money they have managed to save in their lifetime, and even among those who leave behind. money elsewhere, many of them do it for the benefit of their families in another way.
“Some seven percent say they will leave their money with their friends and family, but not their children. It’s higher among young people, aged 18 to 34, who are likely to have young families, so they can leave money to anyone. will take care of their children.
“Others leave money directly to the grandchildren, to help them get started in adult life and avoid the risk of the money being subject to inheritance tax twice. Some respondents pointed out that their offspring did not need their money and that they were already better than their parents.
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“Among those who did not intend to leave anything for their children, a common theme was that they did not want to prevent them from making their own way in life, as well as concerns about what to do with them. ‘they could do with the money, and the idea that somehow it would make their offspring hope for death. “
Ms Coles went on to reiterate how important legacies can be to future generations and advice has been published on how money can be passed on effectively.
“But leaving money for your kids can make a huge difference to their finances for the rest of their lives, and there are other ways to address these issues,” she said.
“You can save your children from counting the days until you die by considering giving gifts while you are alive. This means that they can have an inheritance when it makes the most difference.
“It also means you can see them get the most out of the giveaway, and there can be tax benefits as well.
“You can give gifts of up to £ 3,000 a year that immediately leave your estate for inheritance tax purposes, or you can give gifts of any size, and as long as you live seven years after returned the money, it is not counted in the calculations of inheritance tax either.
“If they are young and you are worried about what they would do with the money, there are options. If they are under 18, you may consider putting money into their Junior ISA or in a simple trust.
“Either way, they let you leave the money immediately, but they won’t get their hands on the money until they’re 18, when it gives them a valuable head start in life. adult. “
Ms Coles concluded: “It can be hard to imagine our children making smart and informed decisions about what to do with an inheritance. However, when you pass away, as soon as they turn 18, they will take their own decisions anyway.
“You have to ask yourself if you want them to have the opportunities that a nest egg offers them, or if you want them to make their mistakes with no financial security behind them.
“If the kids are older and you’re worried about the effect the money will have on them, you can keep some control by leaving the money in trust. the expense in order to leave them a legacy that works for you.
“Sadly, in some cases, the decision not to leave money for the children may be down to the personalities involved, with one in five people saying they just didn’t want their children to profit from his death.”