Protection & Inheritance Tax Planning

Protection planning not only benefits you but your family too. It is imperative when working with a client that we understand not only their ambitions but also get to know them on a personal level. In the unfortunate event that you have an accident, develop an illness, become unemployed or even die, it will be your insurance that helps your family continue to enjoy their quality of life.

Norwich Ethical Investment & Financial Advisers
Kate, Birmingham

“Investing Ethically went above and beyond at all points in the process to help me make sound and informed decisions. I was really grateful to have their help.”

The biggest legacy you can leave your family, is the certainty and security that protection insurance can offer. Whether you are choosing to protect against illness, an accident, death or even just unemployment, it is a critical and compassionate decision that will help to leave your family in safe hands.

Many people believe that state benefits will be sufficient to cover these particular events, but that is very rarely the case. At Investing Ethically, we can advise you on a variety of options, including:

  • Life insurance
  • Mortgage Protection
  • Critical illness insurance
  • Income protection insurance
  • Accident, Sickness and Unemployment (ASU) protection; and mortgage payment protection.

Inheritance tax planning (IHT)

Over the course of a lifetime, you will have worked hard for the money you have earnt. This is money that you would like to see passed on to your family. Unfortunately, with estates valued over a certain level (the Nil Rate Band), Inheritance Tax can substantially reduce the value of your loved ones’ inheritance.

However, there are ways that you can reduce your inheritance, including:

1. Using trusts
There are a range of trusts that can be used to help reduce IHT liability. This will also allow you to retain some control, plus right to income and/or capital. These include:

  • Discretionary Trust
  • Discounted Gift Trust
  • Loan Trust

2. Funding the liability – Whole of life insurance
Once we have established the amount of IHT your estate would suffer, a suitable insurance contract can be set up to protect the liability.

3. Gifting – Exempt transfers, potentially exempt transfers and IHT relief
There are a number of lifetime transfers that are considered either totally exempt, or potentially exempt. It is worth exploring these, to discuss what opportunities are available that will reduce your IHT.

4. Other options
Other options include:

  • Making charitable donations
  • Holding investments that qualify for Business Property Relief i.e. shares listed in the Alternative Investment Market
  • Enjoying your money!!

Each of these measures can substantially reduce the amount of tax your estate is liable for, equally you could do nothing and let the beneficiaries foot the bill. Picking the right one isn’t always easy though, which is where the knowledge and understanding of our advisers is paramount. By getting to know you, and understanding who and what you are about, we can accurately and confidently direct you towards the most appropriate solutions.