Believe it or not, estate planning is not about passing down money when you die. It’s about enjoying life now and making sure that you have enough to be comfortable with. If you want to get the best result out of your pension, then you have to make sure that you are doing everything you can to reduce your bill as much as possible.
Passing Down Assets
A lot of people want to try and control the assets that they pass down. They want their money to be used for a reason, or to even stay within the family. If you want to make sure that this is the case, then it is possible for you to make a financial gift. You can make a one-off cash gift or you can even set up a trust if you want. If you want some professional advice then https://tailormadepensions.eu can help you out.
How Much Can You Afford to Spend?
Estate planning will usually involve you spending money and giving some away. Some people like to hold back because they are concerned about running out of money later on in life. This is normal, but it does mean that you need to start your estate planning venture as soon as possible. If you do then you can easily make the most out of every decision you make.
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Managing a Bill
If you plan out your estate properly then this can save you a huge amount of tax. Inheritance tax will normally be charged at 40% on everything that happens to be above the nil rate band. The potential savings here can outweigh the cost of the advice you get. If you take action early, then it means that more of your money will go to your beneficiaries. You can make gifts, which involves using your other asset. You might also be able to use some of your other assets so that you can pass on your pension or even provide a retirement income. Taking out a life insurance policy to cover your tax bill may also be an option.
Passing on your Pension
Pensions can provide a huge role when it comes to your estate planning. They aren’t normally included when your bill is calculated. If you are able to afford to leave your pension untouched when you are using other assets to fund your retirement then you can pass on your pension, tax-free while also gradually reducing the overall size of your taxable estate.
Using Trusts to your Advantage
Trusts remain to be a very powerful tool and they have a lot of different uses too. This is especially the case when you look at estate planning. It may be that your money can only be accessed at a certain time or for a set reason. Either way, you can set your life insurance up in a trust and when you do, you will then find that your money can be accessed right away.
