No one wants to consider their own demise. But when it comes to financial planning, it is irresponsible not to.
If you have experienced a major change in your life, like a marriage, birth of a child or a move abroad, you way wish to consider making a new will.
Without a valid will in place, your assets may not be distributed in accordance with your own wishes, as the appropriate country’s laws and regulations act to deal with your possession as they see fit. Accordingly, for that reason alone a will is worthwhile.
If you live abroad there are other reasons for sorting this out as soon as possible. For instance, some countries do not recognise legal constructs that we take for granted in the United Kingdom like trusts, so you may wish to get local legal advice about how to put your wishes into effect.
From an organisational point of view, your executors would thank you for making a will. Without one, if your assets are scattered across the world they will find it very hard to deal with your estate.
Then comes the issue of tax. Inheritance tax can take a sizeable chunk out of your estate. However, there are steps that you can take to mitigate this. A competent financial adviser can show you legitimate ways in which you can hold your assets, or distribute them to your would-be beneficiaries, and reduce your estate’s potential IHT exposure.
If you are planning to be away from the UK for more than 5 years, a QROPS may help your IHT planning. Qualifying Recognised Overseas Pension Schemes are often talked about in terms of reducing the amount of income tax you pay. However, they may also be able to reduce the amount of inheritance tax your estate has to bear. Using certain types of QROPS can even facilitate the direct transfer of pension assets to your beneficiaries on your death.
QROPS.net are well versed in the rules and regulations of QROPS and their sister product QNUPS. Depending on your circumstances, we may be able to help reduce your estate potential IHT bill – a find you a great pension in the process.
