Prepaid Funeral Plans
Get organised upfront and take the job off your kids hands
Save money now by paying in today’s money
Know your money’s safe in an Independently managed Trust Fund that will cover the costs
Do you know who not to go to in the marketplace, and why?
And then there’s your Funeral Arrangements, have you done yours yet?
I want to make things easier for my family if I suddenly died.
Your Will is only going to handle your estate, not your body so it goes hand in hand to put in place a funeral plan now, then it’s done. You wont have to come back to it later on.
Prepaying your funeral sounds a rather macabre thing to do, but put that thought to one side for a minute and give some consideration to the many benefits.
First, your family will be glad you did it, as it will save them the job of organising it immediately after your death. I can speak from personal experience on this point and believe me it was a great help and weight off my mind.
So you choose the type of funeral you want and pay for it now, at today’s prices, relieving your family from the financial burden and fixing the cost now will save a lot of money in the long run.
Your funeral director’s fees are guaranteed to be fixed, you can personalise the arrangements to reflect your wishes and if you use a Golden Charter plan (we only sell them) they will make a small donation to the Woodland Trust to continue creating woodland across the UK
We know the funeral plan market and it is extremely saturated with suppliers, and it is unfortunately a ‘buyer beware’ scenario which is why we stick with Golden Charter, they are undoubtedly the best. They represent all of the smaller independents, you will get a more personal service and the most important point is that the trust fund that holds your money is run independently from the company. It has more money in it than the total liability it has got to pay in the future, it is sound. Ask us for details.
It makes sense for so many good reasons.
Top 10 Inheritance Tax Tips
- The Annual Exemption – you can give away £3,000 each year, so a couple can give away twice this amount. If you don’t use this allowance one year, you can use it in the next year.
- Gift Assets to your Children – these are known as ‘potentially exempt transfers’ (PET’s) and provided you survive 7 years then the job is done. Who should make the gift? Will you lose control of the asset that you’ve gifted? Well, you can protect the gift in the hands of the recipient so you don’t need to lose total control of it.
- Gift part of your house to your children – after 7 years it is out of your estate for IHT. The trouble is you have to pay full market rent to your children. They in turn have to pay income tax on the rent received. If they sell it they will be liable for Capital Gains Tax (CGT) on the gain on their share, and if you get it slightly wrong the gift will fail entirely. The better solution is for one spouse to sell their half share of the house to the other spouse in exchange for an IOU, which is then gifted to the children as a 7 year PET. After 7 years, half the ‘value of the house’ is out of the estate for IHT, but the married couple still owns the entire house.
- IOU Scheme – as tip no. 3 above but it can be done with any asset, e.g. a share portfolio, second property and so on. When set up properly, the value of the asset will be taken out of the estate after 7 years.
- Deed of Variation (DoV) – say a relative dies and leaves you an inheritance that creates you an IHT liability. Use the DoV procedure to vary that Will after death and set up a Trust to receive the inheritance for the benefit of you, and your family. There are time limits but this works very well if set up correctly.
- Gift out of regular income – if you have an IHT estate and your income is higher than your expenditure, the problem will only get worse as time goes by. Gifting the excess out of regular income to your children is immediately exempt from IHT. The rules can be tricky to implement but this is a very significant exemption if used correctly.
- Business Property Relief (BPR) Scheme – if you hold investment assets in a BPR scheme for only 2 years they will be 100% exempt from IHT. You need to retain these assets until you die but you can get an income and, since you have not given these assets away, you can cash them in at any time if you need to.
- Settlor Excluded Trust – if you want to gift an asset to your children to avoid your IHT after 7 years, but the asset has gone up in value (like a house) and would trigger a CGT liability if you sell it, you could instead set up a Settlor Excluded Trust and transfer the asset to that trust. As you are the Settlor and a trustee you therefore retain control of the asset, but as you will have no benefit from it, given 7 years it will be out of your estate for IHT and you will get holdover relief for CGT as well.
- Discounted Gift Trust – can seem attractive and you can get an immediate IHT exemption for part of your initial investment. The trouble is the portion that is exempt is based on your age and health so it may not be as great as you had wished for.
- Family Protection Trusts (FPT’s) – avoid the problem in the first place. If inheriting from your parents is going to give you an IHT problem, get them to set up FPT’s because with their assets ‘in trust’ you will have the option of borrowing your inheritance from the trust in exchange for a valid IOU so that you get the full benefit of the inheritance without incurring an IHT liability.
What Our Clients say
Shirley & Dave Smith
ACMA FIPW STEP Affiliate
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See how Rob Abell can help you and your family plan for the future.
ACMA FIPW STEP Affiliate