Inheritance tax planning is similar to pensions / retirement planning in that the majority of us does not give it much consideration until it is absolutely necessary. It is easy to put off things like this in fact it is probably human nature to avoid things which we may initially consider low risk in favor of more immediate concerns.
This is common mistake and unfortunately it is one which can result in a large portion of your estate being taxed by the government, especially if you are planning to leave property to your children. Whilst inheritance tax taxes may remain the same over the years, in most countries, house prices are rising beyond the threshold meaning more and more people are getting stung for large amounts of tax on their inheritance.
After working hard for several years and painstaking planning in terms of your finances, we all find ourselves at a crossroads, and we must make important financial decisions. It is normal for you to wish to leave something for your loved ones. The assets you have accumulated are yours to do with as you please. That said, your final will and testament should be drafted sooner rather than later and plans should be made in advance.
In today's world, anything can happen and getting caught off guard is a real possibility. Future preparations are not limited to your pension plan. You also need to consider whether you wish to acquire additional assets, plan how to fund your retirement and decide how your assets will be dispersed upon your passing.
When leaving your estate to a certain person or people, you need to take into account that the person you bequeath your estate to could incidentally pass away along with you or even prior to your death. Your will should include a clause that dictates where your estate is to be redirected in such an event.
Your will may be adjusted at any time if you wish and you need to detail all valuables. If you acquire a second home or other assets after your will has been drafted, you will need to amend your will to include it. If you choose an equity release plan to help fund your retirement or another need, you should also take a note of how it will affect your inheritance. When you acquire property or goods of value, you should have a plan in place so that it goes to the right people or person according to your desires. Early planning means that you are in control.