How to manage wealth surplus and last will
If you are worried about the taxes on your wealth, follow these suggestions to ease the tax burden.
08:31 14 December 2013
Many people have been struggling with staying afloat during the difficult economy, but there are also many who have remained successful and are concerned with managing finances in a way to legally reduce their tax burden.
When you amass a certain amount of wealth, your loved ones can be faced with a hefty Inheritance Tax. In order to ensure that your loved ones receive what you want them to, you will want to follow a few guidelines.
- Keep an updated will—while it does not seem as though you might need one if you want everything to go to your spouse, the reality is that a lot can happen to prevent your spouse from receiving the wealth and assets you intend. A will ensures that your assets and wealth are distributed according to your wishes. The key is keeping your will up to date so any changes are accurately reflected.
- Make a difference—if you have ever wanted to make a difference, it is a good time to decide how to best use your surplus of wealth. Giving gifts within the allowed limits and scenarios can help friends and family, as well as certain charities.
- Set up trusts—this is a good way to ensure that your loved ones will receive the wealth you intend for them, and can also help you avoid some of that Inheritance Tax in the process. Even though you would need to speak with a professional about setting up the trusts, it would be worth it in the long run to ensure people—especially minors—receive the funds they are supposed to, in the timeframe they should.
Your loved ones will have more than enough to worry about while they are grieving without having to enter legal battles to get the funds intended for their use.