In his budget last week, UK Chancellor Jeremy Hunt, announced his intention to move to a residence-based regime for Inheritance Tax (IHT). The question is how will this affect us as expats?
Gifting an asset directly to a loved one or indirectly via a trust can be a really effective way of mitigating Inheritance Tax (IHT). However, care needs to be taken to make sure that HMRC doesn’t put the kibosh on your well-laid plans. If they view your action as a “gift with reservation of benefit” then the asset in question will still be viewed as part of your estate for IHT.
Richard Burton was an actor renowned for both his exceptional talent and his turbulent personal life. He also offers a cautionary tale for expats when it comes to estate planning. Despite his efforts to avoid UK inheritance tax (IHT), including living for more than a quarter of a century in Switzerland, Burton’s story reveals the complexities and pitfalls of domicile laws and their impact on inheritance tax (IHT). The Dazzling Life and Unexpected Legacy of Richard Burton …
Inheritance tax (IHT) is a contentious subject for many, especially as it revolves around the sensitive topic of what happens to one’s assets after death. For those affected, understanding the basic IHT rules is crucial. However, the waters become muddier when considering situations involving a non-domiciled spouse.
Do you have assets in more than one country? Do you know how your Will will be treated in different jurisdictions? From forced heirship in Europe to the role of executors in Asia, here’s what you need to know.
Picture this: you’ve spent a lifetime building memories, accumulating assets, and nurturing relationships. Then, in a blink of an eye, you’re gone. Your life’s work, potentially left to the winds of chance. That’s the harsh reality for those who pass away without a will.
Are you an expat living in the UAE and wondering how succession laws may affect you, your family, and your assets? Look no further! This comprehensive guide will provide you with a step-by-step understanding of UAE succession law. Navigating the intricacies of inheritance can be daunting, especially in a foreign country with its unique legal framework. However, with our expert insights, you’ll gain the knowledge and confidence needed to ensure your assets are protected and distributed according to your wishes.
There has been much chatter in the press recently regarding the abolition of Inheritance Tax (IHT). However, for the time being, and for the foreseeable future I expect, it remains a thing and should be planned for accordingly. One effective way to do this is via gifting. If you make a gift during your lifetime, it becomes exempt from IHT after seven years. However, many people are unsure how to report these lifetime gifts to the taxman (HMRC).
Inheritance tax (IHT) is a concern for many expats who retain a connection to the United Kingdom (e.g. domicile), as it can significantly impact the wealth passed down to future generations. However, with proper planning and the right strategies, it is possible to mitigate the burden of inheritance tax.
If there is a possibility that you might receive an inheritance in the future, it is important to be aware of the following four things. Keep them in mind for future reference.
In recent years, as asset prices have marched higher, Inheritance Tax Loss Relief has generally been overlooked. However, at times of volatility in global stock and bond markets, such as we have seen this year, it is definitely a subject that is worth revisiting.
You have probably been told on numerous occasions that you should have a Will. Indeed, doing so may have been on your mental to-do list for months or years. However, you haven’t yet gotten around to it. This may just be due to the hustle and bustle of day-to-day expat life. It may be that you aren’t really sure how to get started. Nonetheless, making a Will is one of the most important things we can do.
A property trust will (also known as a property protection trust, an asset protection trust, a family protection trust or a property preservation trust) keeps your home safe for your loved ones after you die. It does this by placing your share of the property in a trust, so that the people you want to benefit from it can – but without owning it. With a property trust will, your spouse can still live in the home you share after…
If you have a life insurance policy or a pension, have you nominated who you want to benefit in the event of your death? This is something that I strongly advise all clients do. If you don’t have an up-to-date beneficiary nomination form in place, your assets may be distributed in a way that is very different from what you had in mind. Making a beneficiary nomination puts you in control and gives you certainty over where your money will…
Legislation introduced by the Taxation of Pensions Act 2014 meant that, in the majority of cases, pension benefits are able to pass down through the generations free of inheritance tax, as long as they remain within the pension wrapper. Therefore, if you have a straightforward family situation and are leaving funds to beneficiaries that you perceive as responsible, then passing these funds on within your pension is likely to be the best option.
The EU Succession Regulation (EU 650/2012), also known as Brussels IV, came into effect on 17th August 2015. The aim was to resolve the complex cross border probate disputes that had arisen as an unintended consequence of the freedom of movement of workers and retirees within the EU.
Do you consider your pension an asset in the same way that you think about assets like property, bank accounts, cars, and investments Some people see pensions differently to those types of assets, but the truth is that your pension is another valuable asset (in many cases it can be worth even more than the family home). That’s why planning for what happens to your money when you die should include planning for what happens to your pensions along with…
As the old saying goes, it is better to give than to receive. But did you know that when you give your loved ones a gift you can also benefit as well as the person you’re giving to? It may come as a surprise, but when you make gifts as part of your overall inheritance tax planning, you can have the pleasure of giving, bring joy to your loved ones through your generosity, and even reduce your inheritance tax liability…
As the old saying goes, the only sure thing in life is death and taxes. Having a Will in place can at least help mitigate the emotional stress of the former. However, it is crucial that any Will is kept up to date with changing personal circumstances. In this post, we will look at the impact of marriage and divorce on an existing Will.
Have you ever thought about how you would like your affairs to be left in the event of your sudden death? Apologies for such a dramatic lead-in, however when one of my clients passed away suddenly (he was the same age as me), it got me thinking about how I can help others make sure that their financial affairs are better organised in case of such an event. As expats, it is not uncommon for us to be less than…
