Do these questions sound familiar?

Estate Planning

• How much is the rate of inheritance tax?
• How much is the nil rate band?
• What is the residence nil rate band?
• What is a potentially exempt transfer?
• What is taper relief?
• How can passing on a pension reduce inheritance tax?

Mosaac is registered in England and Wales, Company registration number 07984481. Registered office: 1 Station Road, Royston, Barnsley, S71 4EW.
Mosaac is authorised and regulated by the Financial Conduct Authority. FCA No. 581080.

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Managing Inheritance Tax

Estate planning can help reduce the amount of taxes owed on an inheritance. Inheritance tax is typically levied at a rate of 40% on assets above the nil rate band. By taking action early on, you can ensure that more of your money goes to your beneficiaries. There are many ways to manage, reduce or eliminate an inheritance tax bill. You could:

• Make gifts
• Use other assets to provide a retirement income, passing on your pension
• Take out a life insurance policy to cover your tax bill
• Use tax-efficient investments to benefit from Business Relief

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Tax rules, allowances and exemptions for making gifts

The UK has rules for tax on gifts. The annual allowance for gifting is £3,000, which can be split between multiple people. This allowance can be carried forward to the next year for a maximum allowance of £6,000. Gifts to a spouse or civil partner are tax-free if their permanent residence is in the UK. You can make several small gifts of £250 per person, but no one can receive more than £250 in small gifts. Regular gifts from excess income are tax-free, as long as they do not impact your usual lifestyle. Gifts to charitable organisations, museums, universities, sports clubs, and some political parties are also tax-free. 
The rules can be complex, so it may be helpful to speak with a financial planner if you have questions about gifting.

Working With Mosaac

At Mosaac, we specialise in helping you secure your legacy through comprehensive estate planning. Our expert advisers begin with an in-depth consultation to understand your unique financial situation, family dynamics, and long-term goals. Using detailed market insights and advanced planning tools, we craft a personalised estate plan that ensures your assets are protected and distributed according to your wishes.

We understand that estate planning is a significant step that can impact your family’s future for generations. That's why we offer ongoing support and regular reviews to adapt your estate plan as your circumstances change, ensuring that your legacy is preserved and your financial future remains secure.

• Why estate planning is important
• Understanding UK Inheritance Tax
• Creating a Will
• Setting up a Trust
• Managing your assets
• Seeking professional advice
• The role of a financial adviser in estate planning
  

What to spend and what to give away?

Estate planning is an important part of financial planning that helps you enjoy your life now, while also ensuring that you have enough money to live on in later life. We consider potential expenses, such as the cost of later-life care. Estate planning can also involve passing on assets in the most effective way, and reducing or managing an inheritance tax bill. It's important to start planning early, in order to make the most of your assets and ensure that you have enough money to live on.

Passing on your assets efficiently

Many individuals desire to maintain control over their assets when passing them on to others. This may involve specifying how their money should be used, such as for education expenses or a down payment on a home. Alternatively, some individuals may simply want to ensure that their assets remain within their family. We can provide guidance to ensure that your assets are distributed in accordance with your wishes.

Passing on your pension

Pensions can be an important consideration in estate planning. Unlike other assets, pensions are generally not included in the calculation of inheritance tax. If you can fund your retirement using other assets, you may leave your pension untouched and pass it on to your beneficiaries tax-free. This can help reduce the size of your taxable estate over time.

Utilising Trusts 

Trusts are a common and useful tool in estate planning. They can be used to control when and for what purposes assets, such as gifts or life insurance policies, can be accessed. For example, a trust can be set up to distribute gifts at a specific time or to pay an inheritance tax bill immediately upon the death of the insured person. Trusts provide flexibility and can help ensure that assets are managed and distributed according to the wishes of the person creating the trust.