Richbrits Networking Event

RICHBRITS NEWSLETTER UPDATE...

The Richbrits Networking Event is happening on Monday 6th July... so purchase your tickets TODAY! 6th July 2009 start time 19:00 to 21:00 MARRIOTT HOTEL, GLASGOW ROAD, EDINBURGH (just off the bypass) Paypal link (If you have difficulty with paypal then please contact) laura@richbrits.co.uk

Protecting your assets against attack

Many companies when considering Estate Planning Strategies for clients concentrate solely on the effects of Inheritance Tax on the estate of the deceased. Although very important, this is not the only concern that most clients have.

When giving estate planning advice, Countrywide Legal Services Ltd can offer strategies that consider all of the following threats on the deceased’s estate:

1. BloodLine planning i.e. ensuring the deceased assets are not threatened by the following:

• Remarriage of the survivor
• Divorce / Separation within the beneficiaries normally the children
• Bankruptcy of the beneficiaries

2. The effect on the deceased assets if the survivor enters Long Term Care.

3. Protecting assets if the beneficiaries are disabled.

4. Minimising the effects of Inheritance Tax

Inheritance Tax has been described as a 'voluntary levy' - as the late Lord Jenkins once said,

“It is paid by those who distrust their heirs more than they dislike the Inland Revenue.”

Consider no Trust Planning in place, and the potential Inheritance Tax through the family generations...

Assume an estate value of £800,000 for a married couple and no Inheritance Tax planning has taken place for them or their bloodline. After Inheritance Tax paid of £60,000 the children will receive £740,000 from their parents.

If we assume the children already own assets in their own name at, or above the current Inheritance Tax Nil Rate Band then when they pass away the Inheritance Tax payable on the estate left to their children will be 40% of £740,000 i.e. a further £296,000 Inheritance Tax would become due.

The value of the original grandparent’s estate reaching the grandchildren will be £444,000.

In two generations the estate from grandparents has decreased from £800,000 to £444,000. £356,000 has been lost to the Inland Revenue in Inheritance Tax payments.

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Michael McCready and Chris Smith of Countrywide Legal Services will be in Edinburgh tomorrow afternoon (2nd July). If you would like to find out how to protect your assets, drop me an email or pop along to The Marriott Hotel, Glasgow Road, Edinburgh around lunchtime, and I will introduce you to Michael and Chris.

After all the hard work and effort that goes into acquiring assets through property investment, stock market trading, savings etc., you owe it to yourself and your family to PROTECT those assets and mitigate your tax burden efficiently.