Episode overview
In this episode, James is re-joined by financial planning specialist Jon Matchett. Together Jon and James talk through key Inheritance Tax planning strategies from both a tax and financial planning perspective. This collaborative discussion opens up a broad range of action points for anyone concerned by leaving their estate with a large tax bill.
Episode summary
In this episode of Summing Up, Jonathan Matchett joins James Shipp to explore the key strategies, opportunities and common pitfalls surrounding Inheritance Tax planning. Combining both tax and financial planning perspectives, the discussion helps listeners understand how proactive planning can reduce the tax burden on their estate and maximise the wealth passed on to future generations.
The episode covers a range of practical inheritance tax planning options, including gifting, trusts, available reliefs and the mistakes that can lead to unexpected tax liabilities. Jon and James also highlight the importance of reviewing estate plans regularly and seeking professional advice to ensure arrangements remain effective and aligned with personal objectives.
Key takeaways
Early inheritance tax planning can help preserve more wealth for future generations.
Gifting and trusts can play an important role in reducing inheritance tax exposure.
Understanding available reliefs may help minimise tax liabilities.
Poor planning or common mistakes can result in unnecessary tax costs.
Estate plans should be reviewed regularly as circumstances and legislation change.
Professional advice can help ensure an effective inheritance tax strategy.
Chapters
00:00 – Introduction
01:23 – The basics of inheritance tax and allowances
03:44 – What assets are included in an estate?
05:36 – Residence nil rate band explained
07:02 – Spousal transfers and mirror wills
09:47 – Dividing property and covering the tax bill
11:03 – Changes for business shares and farms
12:18 – Bringing pension funds into inheritance tax
15:54 – Starting your planning: valuing assets and debt
16:38 – Spending, gifting, and the seven year rule
19:55 – Gifts with reservation and family homes
20:42 – Using life insurance policies in trust
23:33 – How trusts can help manage family wealth
25:04 – Involving the family and summary
Guest bio
Jonathan Matchett is an Independent Financial Adviser at Lovewell Blake Financial Planning, specialising in retirement, inheritance tax and estate planning strategies.
