Estate planning is no longer optional for doctors and dentists — it’s become an essential part of a financial plan. The main goal behind building a solid estate plan is to provide peace of mind for your family’s future – ensuring you’ve saved enough for retirement and to provide for your family after you’re gone. Plus, it can be a great way to reduce tax.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Be tax savvy
It’s never been more important to make sure the wealth that you’ve worked so hard to build is preserved and protected for years to come. Taking advantage of every tax relief scheme available is one way to do this, but for the best results, you should work with a financial expert long-term. They can help you with everything from simple tasks to advanced planning — any financial help you might need.
While taxes are inevitable, there are ways you can legitimately reduce your Inheritance tax liability. If you don’t plan effectively, you’ll be handing over more of your hard-earned over to HMRC than you need to. IHT is payable on assets someone wishes to pass to a family member after their death.
Don’t forget that any part of an estate that is left to a spouse or civil partner is IHT exempt and the maximum that can be given before Inheritance Tax may need to be paid is £325,000. Spouses can also transfer any unused portions of their nil rate band to each other after one passes.
There are other ways to save through gifts and property so be sure to research all your options to save tax. And don’t underestimate the impact of life cover in trust – it’s essential in providing for the IHT liability that a gift may incur.
Full picture planning
Planning. Setting up a plan to save as much as you can now towards the future is just the start of estate planning. There are so many things to consider. In order to ensure your wishes are met after your death, a will is crucial. It’s the only way you can guarantee your estate is handled how you want it to when you’re not here to oversee it all. Bonus: a will could potentially lessen IHT liability.
Trusts. Another avenue to explore is trusts. You can move assets from the estate into appropriate trusts that allow for parents (settlers) to invest money into. Trustees, usually a minimum of two, need to be assigned to ensure that the investment is doled out per the settler’s wishes to their desired loved ones.
Not sure where to start?
Estate planning and trusts are incredibly complex, but important, areas of financial planning. Every family is different, likewise, every estate is different as well, so it’s always wise to meet with a professional to get custom advice and assistance.
Dental Medical & Financial Services specialises in working with doctors, dentists, and other healthcare professionals so we can provide tailored guidance for your individual circumstances. Don’t leave anything to chance — get in touch with our expert, Darren Scott-Guinness, today.
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.