Estate Planning


Some people want to make gifts to their children or leave money to charity when they die, others may want to cut an Inheritance Tax bill or gain an understanding of what will happen to their estate and everything they have worked hard for when they are no longer around. Whatever your priorities are, the sooner you start thinking about Estate Planning, the more you can do.

The UK has one of the most complex Tax systems in the world. Successive governments have added legislation which means that your earnings, your investments and your estate are all heavily taxed. Yet there are many legitimate ways to reduce the amount of tax you pay and put more money in your pocket, or ensure more money will remain in the pockets of your loved ones when you die.

What is Estate Planning?

Estate planning involves passing on more of your assets to your children and others by reducing your potential Inheritance Tax bill. This usually involves making financial gifts but there are other options available.

How can I cut an Inheritance Tax Bill?

There are several different ways to reduce your Inheritance Tax bill:

  • Make outright gifts
  • Set up a trust
  • Keep your assets while reducing your estate
  • Managing Inheritance Tax without making gifts

How much is Inheritance Tax?

Inheritance Tax is a 40% charge on any assets above the nil rate band – your personal allowance. This allowance is currently £325,000 per person.

Why is it important to make a will?

Your will tells everyone what should happen to your money, possessions and property after you die (all these things together are called your estate). If you don’t leave a will, the law decides how your estate in passed on. This might not be in line with your wishes, nor will it be the most tax efficient solution.

What is a trust?

A trust is a way of managing assets (money, investments, land or buildings) for people. A trust agreement is a document that outlines the rules that you want followed for property held in trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, and to avoid probate.

Without expert financial advice and guidance it can be hard to know where to start, and difficult to figure out whether you are paying more tax than you need to. That’s where Butterfly Financial Services Ltd can help. We work alongside a team of FCA regulated IFA’s as well as having access to a network of regulated legal professionals qualified in all aspects of estate, probate and family planning matters. This enables us to provide the correct information and ensure that you, the client, are given the best level of support for your needs.

Our professional consultants are on hand to take any query on a completely no obligation basis.