For many of our clients, being able to support their children financially and give them a head start in life is one of the greatest pleasures their wealth affords them. However, without sufficient planning, taxation can take a significant bite out of the wealth you have available, both to gift your children and loved ones during your lifetime and for the legacy you have to leave behind.
When it comes to passing on your estate after your death, Inheritance Tax should be a major consideration. This highly unpopular tax is currently chargeable at 40% on estates whose value exceeds £325,000. This tax-free threshold (also called the nil-rate band) has been frozen at its current level since April 2009, meaning that inflation is pushing more and more families over the limit.
Inheritance Tax is a complicated area of taxation, so it is vital to seek professional financial advice to ensure that you are fully utilising all your allowances, exemptions and tax planning opportunities. At S4 Financial, many of our clients are high-net-worth individuals whose estates’ value might far exceed the Inheritance Tax threshold. We place Inheritance Tax planning at the heart of their financial plan, ensuring that as much of their hard-earned wealth as possible passes to their chosen beneficiaries.
Cashflow modelling is a scientific approach to financial planning and has always been central to our methodology. When it comes to our clients’ wealth, we understand that this data-driven approach offers the certainty and confidence they need to make key decisions about their finances.
A cashflow model can help determine the legacy you can afford to leave behind as well as what you can afford to gift during your lifetime, whilst still enjoying your preferred standard of living.
Talking about money has long been taboo in many families, but it is becoming ever more important to discuss your plans with your heirs and loved ones. Modern families can be complex, with divorces, remarriages, stepchildren and a range of other family scenarios rendering intergenerational wealth planning tricky at the best of times.
Including your family in your planning and decision-making processes can help set expectations, avoid conflict and give your loved ones the opportunity to make plans for the future based on all the information. Talking openly now means that there will be no nasty surprises down the line, when you are no longer around to explain the choices you have made.
As we have acknowledged, it can be difficult to have open discussions about money with family, especially if you know that your plans may not be welcomed by your heirs and loved ones. At S4 Financial, we are always here to support you when discussing these tough topics.
We pride ourselves on the long-term relationships we develop with our clients, working not only with them but with multiple generations of their family to provide sound, professional financial advice and build the foundations of a prosperous future. We believe that it’s never too early to start planning for the future, so please do get in touch to discuss your requirements.
A cashflow model can help determine the legacy you can afford to leave behind as well as what you can afford to gift during your lifetime, whilst still enjoying your preferred standard of living.
Planning ahead makes all the difference. By using allowances like the nil-rate band and annual gift exemptions, you can reduce the value of your estate that counts toward Inheritance Tax. Thoughtfully timed gifts – especially those made more than seven years before your passing – can also fall outside your estate. With careful structuring, you can help maximise what your loved ones inherit. We can guide you through each step.
You have several flexible options. Annual exemptions let you gift up to £3,000 per year, plus small gifts of £250 to multiple individuals. You can also make regular gifts from surplus income. Once you’ve used your allowances, living gifts may still be exempt if you live for seven years. We can help you work out exactly how much you can give without affecting your long-term security.
Absolutely – these tools can be powerful when used correctly. Trusts give you control over how and when assets are passed on, potentially reducing your taxable estate. Pension planning, especially considering pension funds will becoming liable to Inheritance Tax from April 2027, can help protect retirement savings. Life insurance held in trust can provide both liquidity for heirs and Inheritance Tax-efficient benefits. We can help you combine these approaches into a personalised strategy that reflects your goals and protects your legacy.
Starting the conversation early and with empathy helps build understanding and harmony. Frame the discussion around values and future vision rather than just numbers – what matters most to you and your family. Clear, compassionate dialogue paves the way for smoother transitions, expectations and long-term peace of mind. We can support you in these conversations, offering both financial clarity and a framework for open, constructive discussions.
Should you wish to book a consultation with an adviser to see how we can help you grow, maintain and preserve your wealth for a prosperous future, please do get in touch.
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Unit A, Causeway Farm
Cricket Green
Hartley Wintney
Hampshire
RG27 8PS
S4 Financial Ltd is an Independent Financial Advisory firm, authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.gov.uk/register/) under reference 401372. Registered office address: Unit A, Causeway Farm, Cricket Green, Hartley Wintney, Hampshire RG27 8PS. Registered in England, Company No: 05089919. VAT Registration no. GB 844 5062 31.
The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
The Financial Conduct Authority does not regulate cashflow modelling, tax planning, will writing, or trusts.
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Join our subscriber community for our latest news and considered insights
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Join our subscriber community for our latest news and considered insights
