Passing on your pension plan: A tax-efficient way to leave your assets to your loved ones
In the UK, your pension plan does not usually form part of your estate, meaning that it can be passed on to your family without being subject to inheritance tax. This makes it one of the most tax-efficient ways to leave your assets to your loved ones.
To pass on your pension plan, you will need to nominate who you want to inherit it by filling out a form with your pension provider. You can choose to nominate as many people or charities as you like and decide the portion each of them should receive.
The government's inheritance tax receipts have reached a record £7.1bn for 2022/23, and are forecast to increase to £8.4bn by 2027/28.
This increase is being driven by a number of factors, including the freeze on the inheritance tax free threshold, commonly referred to as the 'nil rate band', until at least 2027/28. This coincides with the surge in property prices during the pandemic period, further contributing to the overall increase in tax revenues.
If you are concerned that inheritance tax may be due on your estate, it is important to take proactive steps to minimize your potential tax burden. An independent financial adviser can help you to work out the total value of your estate, calculate how much tax your loved ones would potentially owe, and explore options for managing the potential tax bill.
Did you know your ISAs form part of your estate on death? They are then potentially subject to inheritance tax. Many people have saved large amounts with ISAs, taking advantage of their tax-free status over the years.
With the average inheritance tax bill standing at £200k and £7.1bn recorded in inheritance tax receipts in the most recent tax year, don't give away your money unnecessarily. It is possible to convert your ISAs to inheritance tax-free status in two years.
One of the benefits of being part of the 1987 Foundation is the annual 'get-together'. This month, we were delighted to sponsor a tour around the University of Bristol Botanic Garden followed by a cream tea for the supporters of BRACE. As a fairly new Trustee, Richard was thrilled to meet so many long-term supporters of the charity.
Discover how charitable giving provides an opportunity to make a positive impact on society while potentially benefiting your loved ones by reducing the tax burden on your estate.
Learn about the freeze on the inheritance tax free threshold and its impact on tax revenues, particularly with the surge in property prices. Understand the implications and stress of paying the inheritance tax bill before receiving anything from the probate process.
Find out about the current nil rate band and available reliefs and exemptions. Seek proper financial planning to minimize your potential inheritance tax burden. Contact us for assistance in assessing your estate's value, calculating potential tax liabilities, and exploring options to manage the tax bill and utilize applicable reliefs and exemptions.
Discover the financial considerations when it comes to paying for care. Understand the self-funding threshold and average costs of residential and nursing care. Explore options like Deferred Payment Agreements, renting out your property, equity release, cash savings, investment, and Immediate Needs Annuities. Navigating these complexities can be challenging, but engaging with a SOLLA Accredited independent financial adviser ensures a bespoke strategy for your long-term care planning.
Discover the importance of planning ahead for long-term care and the potential financial consequences of leaving it too late. Learn about the average costs of residential and nursing care, the risks of depleted savings and assets, and the available financial tools to protect your wealth. Seek professional advice to navigate delicate considerations like deliberate deprivation of assets.
Find peace of mind for yourself and your loved ones by proactively planning and preparing for long-term care. Contact Richard, a SOLLA Accredited adviser and renowned vulnerable customer champion, for a complimentary meeting to discuss your circumstances.
Organising lasting powers of attorney (LPA) provides invaluable peace of mind, ensuring your affairs are handled by trusted individuals in case you're unable to make decisions. Learn how to choose reliable attorneys who prioritize your best interests, including loved ones, friends, or professionals like solicitors. Effectively communicate your wishes regarding medical treatment, care preferences, and end-of-life decisions. Selecting multiple attorneys and keeping your LPA updated are crucial for comprehensive protection.
Curious about what it means to be an attorney through a lasting power of attorney (LPA)? This comprehensive guide explains the role of attorneys and the decision-making process once an LPA is registered. Whether it's a health and welfare or property and financial affairs LPA, find out how you can assist the donor in making choices while considering their best interests. Learn about specific instructions within an LPA and the significance of appointing reserve attorneys.
u3a is a UK-wide movement of locally run groups for people who are no longer in full-time work but want to continue to pursue their educational, social and creative interests in a friendly and informal environment.
Read on to find out what Bristol u3a could offer you!
On 20th March 2023, Richard joined Eddie Grant, of Technical Connection to record a podcast about our mission to make Bristol the best later life community in the UK.
Technical Connection is a popular independent technical resource for financial planning and Eddie regularly interviews people about interesting topics within financial planning.
You can listen and/or download the podcast episode here.
We’re proud to announce we have joined the Consumer Duty Alliance (CDA) as an Associate. The CDA now incorporates the Financial Vulnerability Taskforce which we previously committed to adhering to and championing.
Launched on 9th March 2023, CDA is an independent, not-for-profit professional body which aims to support the personal finance sector specifically with the adoption and implementation of the Financial Conduct Authority (FCA) Consumer Duty requirements.
Any firm or individual can join CDA for free and members commit to delivering better client outcomes.
With the increase in the demand for care at home, we quizzed local company, Home Instead Bristol North about what kind of care they provide, why care at home is so popular and what people should be looking for in a provider.
We are delighted to announce Harold Stephens has been shortlisted for three Professional Adviser Awards! Now in their 18th year, the 2023 awards received a record number of entries which have been judged by an independent panel of industry experts.
We were shortlisted for all three awards we entered:
A lasting power of attorney (LPA) is a document by which one person (the “donor”) gives another person (the “attorney”) the power to act on their behalf and in their name.
There are two types of LPA – health and welfare and property and financial affairs. Without an LPA, no one is permitted to make decisions in your best interest should you become unable to make decisions for yourself.
Here's our quick guide to lasting powers of attorney.
It's never too early to organise lasting powers of attorney. As independent financial advisers, we can help you and your loved ones to organise lasting powers of attorney. Call 0117 3636 212 or email office@haroldstephens.co.uk to book a free consultation.
If a loved one has lost the capacity to make decisions before arranging Lasting Powers of Attorney (LPAs), you will need to apply to be a Deputy with the Court of Protection in order to assist them.
There are many difficulties in following this process which is not only costly but also time consuming and will sadly not always been granted.
Find out what’s involved and how you can avoid having to deal with the Court of Protection.
We are delighted to announce Richard Higgs has joined the Board of Trustees for Bristol charity, BRACE Dementia Research. BRACE funds world class clinical and laboratory research into Alzheimer's and other forms of dementia to find better treatments, achieve earlier diagnosis and one day, a cure.
Richard becomes the twelfth member of the Board which is made up of a mix of financial, legal, business and medical experts. The Trustees are responsible for the good governance and strategic direction of the charity.
Richard is hoping his extensive experience in finance and marketing will further strengthen the Board and help the charity achieve its aims.
Without a property and financial affairs Lasting Power of Attorney, no one is permitted to manage your financial and legal affairs should you become unable to make decisions for yourself. Even if you are married, in a civil partnership or have adult children, no one will be allowed to make important decisions without going through an extremely intrusive, time-consuming, and expensive guardianship process.
Find out how engaging with a financial adviser to organise your LPA could help.
Finding it hard to keep up with all the budget changes this year?
Join Richard Higgs for an analysis of what the Autumn Statement means for your later life financial planning. The webinar covers income tax, dividends, capital gains tax, EIS and VTCs, inheritance tax, pensions and social care - a very comprehensive analysis for you!
An update on what BRACE Alzheimer's Research charity have been working on this autumn. We loved attending the Together 4 Dementia Conference and can't wait to attend more BRACE events!
We are passionate about helping people living with dementia and their families. If you need help with financial planning, be assured we have extensive experience and the training required to give you clarity and confidence to make the right decisions for your circumstances.
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