Estate Planning
with Digby Associates
Estate planning is about protecting what you’ve built and making thoughtful decisions for the future. We help you put clear plans in place to pass on wealth efficiently, support those close to you, and give you confidence that everything is arranged as intended.
We help you plan ahead so more of your wealth can be passed on in line with your wishes. Inheritance Tax planning focuses on understanding potential liabilities, making use of available allowances, and creating clarity for the future.
We help you review your estate, consider available allowances and reliefs, and plan how your wealth may be passed on over time.
Inheritance Tax can reduce the value of an estate if appropriate planning is not in place. Without a clear approach, your beneficiaries may receive less of your estate than intended.
Taking time to plan ahead can help you make effective use of available allowances, manage potential liabilities, and ensure your wishes are clearly reflected in your arrangements.
We can help you understand your potential exposure, explain the options available, and put a clear plan in place that reflects your priorities and longer-term intentions.
If inheritance tax is owed on an estate and it’s not paid, HMRC can charge interest and penalties. The tax must be paid within six months of the date of death, and failure to do so can lead to legal action and additional charges.
Gifts made during your lifetime can reduce the value of your estate for IHT purposes. Some gifts are exempt, such as small annual gifts or gifts to your spouse. If you give a gift and live for at least seven years after giving it, it’s generally exempt from IHT under the seven-year rule.
The 7-year rule refers to the exemption of gifts made more than seven years before your death from inheritance tax. If you survive for at least seven years after making a gift, it is generally not subject to IHT. However, gifts made within seven years may be subject to tax, with a tapering relief if you survive between 3 and 7 years.
Yes, leaving money to charity can reduce your inheritance tax bill. If you leave at least 10% of your estate to charity, you may qualify for a reduced inheritance tax rate of 36% instead of the standard 40% on the rest of your estate.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
Yes, you can gift assets before death, and some gifts may be tax-free if you live for at least seven years after making them (known as the seven-year rule). Smaller gifts may also be exempt from inheritance tax.
If you have any questions regarding wealth management at Digby Associates please get in touch with our team of qualified financial advisers for a no obligation chat.
We help you put clear structures in place to protect assets and support the people who matter to you. Trusts can offer control and flexibility when passing on wealth, as part of longer-term estate planning.
We help you protect assets, consider how and when wealth may be distributed, and support tax-efficient estate planning across generations.
Trusts can offer a useful level of control and flexibility, particularly where family circumstances are more complex or where longer-term planning is important.
Without appropriate arrangements, assets may not pass on in the way you intended. A well-considered approach can help protect your wealth and ensure it benefits the right people at the right time.
We can help you understand the different types of trust, assess what may be suitable for your circumstances, and put arrangements in place that align with your longer-term plans and priorities.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
In simple terms, by placing assets within a trust it transfers them out of your estate and into the ownership of the trustees. This reduces the value of your estate and therefore can reduce your inheritance tax liability.
You should review your estate plan every 3–5 years or after major life events such as marriage, divorce, having children, or significant financial changes.
An estate plan typically includes a will, trusts, powers of attorney (financial & medical), a letter of wishes, and plans for inheritance tax efficiency.
Selecting reliable trustees is important as they will be responsible for managing the assets of the trust in accordance with its terms and for the benefit of the beneficiaries.
Close friends or family members are often chosen as trustees because they understand the family dynamics and relationships involved.
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We help you explore higher-risk investment opportunities with clarity and care. Enterprise Investment Schemes (EIS) can provide access to qualifying early-stage businesses, alongside a range of tax reliefs for eligible investors who are comfortable with the level of risk involved.
We help you consider tax-efficient investment opportunities, diversify your wider portfolio, and assess higher-risk investments as part of a broader financial strategy.
EIS can offer attractive tax advantages and the opportunity to invest in smaller, developing businesses. However, these investments carry a higher level of risk, as they invest in assets that can be difficult to sell, and the value of investments can fall as well as rise. Investors may not get back what they originally invested, even taking into account the tax benefits.
Used appropriately, EIS can play a role within a wider financial plan, particularly for those who understand and are comfortable with that level of risk.
We can help you assess whether EIS may be suitable for your circumstances, explain how it could fit within your overall strategy, and guide you through the available options in a clear and balanced way.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
EIS provides several tax advantages, including:
- 30% income tax relief on investments up to £1 million (or £2 million if investing in knowledge-intensive companies).
- Capital gains tax (CGT) exemption on gains from the sale of EIS shares after at least 3 years.
- Loss relief: If your investment performs poorly, you may be able to offset the loss against your income tax.
- CGT deferral: You can defer capital gains tax on other assets by reinvesting in an EIS-qualifying company.
To receive the tax reliefs, you must hold your EIS shares for at least 3 years from the date of investment. If you sell the shares before this period, you may lose the tax reliefs, and the tax benefits would be clawed back.
Most UK taxpayers can invest in an EIS, provided they are at least 18 years old and do not already hold a significant shareholding (more than 30%) in the company they’re investing in. EIS is typically used by individuals with higher net worth or those seeking tax-efficient investment opportunities, but professional advice is recommended to ensure eligibility and suitability.
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If you have any questions regarding wealth management at Digby Associates please get in touch with our team of qualified financial advisers for a no obligation chat.
We help you put important arrangements in place before they are needed. Wills and Lasting Powers of Attorney can help ensure your wishes are clearly recorded and that the right people are able to act on your behalf if required.
We help you consider how your assets may be passed on, ensure someone you trust can make decisions on your behalf if needed, and provide clarity for your family at important times.
Without a Will or Lasting Power of Attorney, decisions may be left to default legal processes or made without the guidance you would have chosen. This can create uncertainty and additional stress for those closest to you.
Having the right documents in place can give you greater control, provide reassurance, and help ensure your affairs are managed in line with your wishes.
We can help you understand what may be needed, guide you through the available options, and introduce you to trusted specialists where appropriate, ensuring arrangements are put in place clearly and correctly.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
Yes, having a will is important regardless of the size of your estate. Without a will, your assets will be distributed according to intestacy laws, which may not align with your wishes. A will also allows you to appoint guardians for your children, specify funeral preferences and make charitable donations.
If you lose mental capacity without an LPA in place, your loved ones will need to apply to the Court of Protection to be appointed as your deputy. This process is time-consuming, expensive, and restrictive compared to having an LPA, which allows you to choose a trusted person in advance to manage your affairs if you become unable to do so.
If you die without a will, your estate will be distributed according to the law, known as intestacy rules. This might result in your estate being passed to relatives you wouldn’t have chosen, and it may cause delays and additional costs in the distribution of your assets.
A lasting power of attorney (LPA) allows you to appoint someone to make decisions on your behalf if you lose the ability to do so due to illness or incapacity. There are two types: one for financial decisions and one for health and welfare decisions. Having an LPA in place can avoid the need for someone to apply to the Court of Protection to make decisions for you.
Yes, you can change or update your will at any time, as long as you are mentally capable of doing so. It’s recommended to review your will regularly or after major life events, like marriage, divorce, or the birth of children, to ensure it reflects your current wishes.
You can appoint a trusted family member, friend, or professional advisor to act as your attorney. It’s important to choose someone who is reliable, understands your values, and is capable of managing your affairs. You can also appoint more than one attorney and specify how they should make decisions (either together or separately).
We help you pass on wealth during your lifetime in a thoughtful and tax-efficient way. Gifting can support loved ones now, while forming part of a wider long-term estate plan.
We help you consider ways to reduce the value of your estate over time, make use of available tax allowances, and provide financial support to the people or causes that matter to you.
Gifting can be an effective way to help manage potential Inheritance Tax liabilities, while also giving you the opportunity to see the benefit of your support during your lifetime.
Without careful planning, gifts can have tax implications or affect your own long-term financial security. Taking the right approach can help ensure your decisions remain both effective and sustainable.
We can help you understand the relevant rules and allowances, consider what may be appropriate for your circumstances, and put a clear plan in place that balances tax efficiency with your longer-term financial security.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
Yes, you can gift assets before death, and some gifts may be tax-free if you live for at least seven years after making them (known as the seven-year rule). Smaller gifts may also be exempt from inheritance tax.
Yes, leaving money to charity can reduce your inheritance tax bill. If you leave at least 10% of your estate to charity, you may qualify for a reduced inheritance tax rate of 36% instead of the standard 40% on the rest of your estate.
The 7-year rule refers to the exemption of gifts made more than seven years before your death from inheritance tax. If you survive for at least seven years after making a gift, it is generally not subject to IHT. However, gifts made within seven years may be subject to tax, with a tapering relief if you survive between 3 and 7 years.
Yes, you can gift property to your children, but it may be subject to inheritance tax if you die within seven years of the gift. Additionally, the gift may be considered a potentially exempt transfer (PET) and may affect your eligibility for means-tested benefits if it’s seen as depriving you of assets.
If you give away assets and later need care or assistance, the local authorities may consider this a deliberate deprivation of assets when assessing your eligibility for care funding. In such cases, they may treat the gifted assets as still part of your estate for care cost purposes. It’s important to carefully plan and seek advice if you anticipate needing care in the future.
If you have any questions regarding wealth management at Digby Associates please get in touch with our team of qualified financial advisers for a no obligation chat.