Passing on your wealth - S4 Financial

| Passing on your wealth

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.

There are many financial strategies that can be employed to safeguard your wealth, for example:

MAKING A WILL

MAKING FINANCIAL GIFTS DURING YOUR LIFETIME

MAKING CHARITABLE DONATIONS

HOLDING ASSETS IN A TRUST

PASSING ON YOUR PENSION

STARTING A PENSION FOR YOUR CHILDREN OR GRANDCHILDREN

TAX-EFFICIENT INVESTMENTS

WRITING A LIFE INSURANCE POLICY IN TRUST

Minimising Inheritance Tax on your estate

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, our clients tend to be high-net-worth individuals whose estates’ value often far exceeds 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.

The benefits of cashflow modelling

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.

What is cashflow modelling?

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Initiating those difficult conversations

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.

Supporting you every step of the way

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.

| Contact us

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.