Wanting to make sure your assets are passed on in the best way possible means you might want to keep hold of an element of control when it comes to inheritance. For example you might want your money used towards paying for school or university fees or for a first property deposit. Intergenerational planning could benefit your plans as without appropriate provision, Inheritance Tax (IHT) could become payable on your taxable estate. From 6 April 2017, an additional ‘residence nil-rate band’ (RNRB) allowance was introduced.
This means you leave your interest in the family home to direct descendants (such as children, step-children and/or grandchildren) however only applies to your main home. The RNRB is being phased in gradually. For the 2018/19 tax year, the maximum additional allowance is £125,000. Other options to consider are, making a Will, lifetime gifts, setting up a trust and leaving a gift to charity could all be part of your plans. Seeking professional financial advice could help you to create future financial plans.