How investment bonds can help you pass on wealth

Welcome to our guide on ‘How investment bonds can help you pass on wealth’.

Starting estate planning early and implementing it in stages is crucial for the long term planning against Inheritance Tax (IHT).

Investment bonds are a great tool in helping to preserve the wealth for future generations to come.

The UK Treasury has been receiving record-breaking Inheritance Tax (IHT) receipts. IHT receipts amounted to approximately £7.09 billion British pounds in 2022/23, compared with £6.05 billion in the previous financial year.

On page 03, we consider why IHT can be emotionally challenging for individuals and families who have to pay it, often requiring the sale of cherished family assets to settle the tax bill.

That’s why starting estate planning early and implementing it in stages is essential.

Divorce is a complex process that often comes with various financial considerations and preparing for a divorce is undoubtedly challenging, especially when it involves untangling your finances.

On page 11, we explain why it’s crucial to carefully consider the financial aspects of divorce to ensure that you can sustain the lifestyle you desire post-separation.

Pension drawdown is a flexible way of taking income from your pension, introduced after the pension freedom rules in April 2015.

Before that, the government limited how much income you could take from your pension unless you had other sources of income, and annuities were commonly used to provide a guaranteed income for life.

Nowadays, you have more flexibility in accessing your pension funds, allowing you to take as much or as little as you want.

Wealth planning isn’t a one-time event. It involves comprehensively evaluating your current and future financial state regularly to formulate and evolve a plan to help meet your financial goals.

You can read the full article here on how to mitigate against IHT.