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Protection Planning.
Most of us know that we need to plan in order to protect the future. But few of us are actually doing anything about it.
welcome to HawkinsThomas Wealth
About Protection Planning.
The fact is that things have changed. There was a time when looking after your estate was only for the wealthy. Today, anybody can find themselves struggling to grasp the complexities of estate protection and Inheritance Tax, and it's not solely about Inheritance Tax either.
More than ever it’s vital to consider the whole picture. How does Capital Gains Tax affect you? What would happen if you were to fall ill? Are you prepared for suffering a loss of income?
We can help you to assess your individual situation and requirements, before coming up with a plan to give you the peace of mind you need.
We can ensure that, when it comes to protecting your estate, you get all the help, advice and support you need.
Making a Will
It’s not always an easy topic to think about, but choosing what you would like to happen to your wealth in the event of your death is an important part of planning for the future. Not only will it give you peace of mind, it will make life a lot easier for your loved ones during a difficult and often emotional time.
Having a carefully written Will in place means you’ll be able to pass on your assets to the people who you want to benefit, while also making the most of available tax reliefs and reducing the Inheritance Tax burden on your family where at all possible.
Without a Will, your estate may not be divided according to your wishes. It’s also a good idea to review your Will regularly, since your circumstances can change over time.
Arranging Power of Attorney
Have you thought about what would happen if you could no longer manage your financial affairs yourself, or make other important decisions?
The effects of ageing or illness – or an unexpected crisis – can put you in a vulnerable spot. Power of Attorney is a way to ensure that someone you trust is on hand to make crucial decisions on your behalf when you’re not able to. A Lasting Power of Attorney can make decisions about your property and financial affairs, your health and welfare, or both.
We work closely with experienced legal service providers who can arrange Wills and Powers of Attorney, and can refer you to them when you need it. So you can be confident that your future finances are in hand.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
The writing of a Will or Powers of Attorney involves the referral to a service that is separate and distinct from those offered by St. James's Place. Wills and Powers of Attorney are not regulated by the Financial Conduct Authority.
Protection answers our fundamental desire to keep safe things that we hold dear.
Choosing which specific types of insurance should be a priority for you can be a tricky task. We can’t predict what tomorrow may bring, but you can protect things you care about.
Providing protection cover in the various forms of life, critical illness and disability solutions is one of the fundamentals of our business.
Working with providers carefully selected by St. James's Place, we offer an extensive product range including:
- Life Cover (including Term Assurance and Whole of Life) – can provide a tax-free lump sum to whoever you select by way of a Trust.
- Critical Illness – provides a tax-free lump sum in case you are diagnosed with an illness such as cancer or suffer a heart attack.
- Income Protection – that gives you a proportion of your income if you had to take time off work due to an accident or serious illness.
- Employee Benefits
- Private Medical Insurance
It can be hard to face life’s ‘what ifs’, but putting plans in place to help future-proof family finances can make a real difference to your peace of mind, and your financial wellbeing tomorrow.
These are just a selection of the solutions available. We would love to sit down with you and discuss your own personal circumstances, before tailoring a solution specifically for your needs.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
Trusts are not regulated by the Financial Conduct Authority.
A Trust is an agreement between an owner of assets and the trustees. The trustees legally own the Trust’s assets but are not allowed to benefit themselves – unless they are also beneficiaries.
The Trust is a legal entity that holds assets before they are eventually released to your chosen beneficiaries. Generally, assets held within the Trust are kept out of your estate for probate purposes.
These days, a Trust is a hugely important financial planning tool. Sometimes, you might want someone who is independent from the family to make those important financial decisions. It may also be beneficial depending on your domicile to ensure that the trust remains offshore.
Whether you appoint professional or lay trustees, the core duties remain the same: primarily, to administer the assets on behalf of all beneficiaries and carry out the terms of the trust. Sometimes, however, a Professional Trustee service can bring added benefits. Professional trustees not only owe a higher duty of care but are also able to act with more objectivity. They have the expertise, specialist knowledge and experience to identify potential problems, provide solutions and generally promote good governance. They ensure professional standards are adhered to and that administration requirements are met.
Jersey’s Genus Trust Company specialises in providing trustee services. Jersey has complete autonomy of its internal affairs, including taxation and other legal matters. This, coupled with its strong financial infrastructure, make it a leading centre for international finance.
The Genus Trust Company was established to forge lasting relationships, and to provide services and solutions. The trustees represent the interests of beneficiaries and make sure due regard is given to clients' wishes and guidance.
Trusts are not regulated by the Financial Conduct Authority. However, please be aware that Genus Trust Company Limited is regulated by the Jersey Financial Services Commission.
The services provided by The Genus Trust Company are separate and distinct from those offered by St. James's Place.
Together we can develop a plan that will provide confidence and help you meet your long-term financial needs.
The St. James's Place Later Life Planning Scheme gives you peace of mind by helping you to plan for Inheritance Tax (IHT) and secure an income to help cover any long-term care costs.
These are some of the points we will look at:
- How to make tax-efficient cash gifts to loved ones
- Your exposure to Inheritance Tax
- Arranging a pre-set income for life to help safeguard against the future
- Keeping control of your money
- The benefits of using Gifts and Trusts*
The value of an investment may fall as well as rise. You may get back less than the amount initially invested.
If the income taken exceeds the growth on the Plan, the capital will be eroded.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
*Trusts are not regulated by the Financial Conduct Authority.
If you live in England or Northern Ireland and your personal assets are more than £23,2501, you will have to pay for any long-term care you might need. In Scotland, that figure is £32,7502. In Wales it’s £50,0003.
Emotional toll aside, arranging care for you or a loved one is extremely complicated. Dealing with issues such as mental capacity, eligibility for state benefits, Lasting or Enduring Powers of Attorney*, the type and location of the care home and funding the care itself can be extremely stressful.
The 'single' average cost of a residential care home in the UK is around £34,944 a year, increasing to more than £48,812 if you need nursing care. With the average stay at about three years, costs can be huge.4
If you need care and have to fund the fees yourself, you’ll have plenty to consider. You’ll want to be in a home you like, and you’ll need to be able to afford to pay the fees for as long as you need to. You might also want to protect your wealth and pass on an inheritance.
Paying for care can be an expensive long-term commitment. There are pros and cons to the various funding options available, so it’s important to get financial advice from a specialist as early as possible.
Whether you’re concerned about saving for future care home fees or facing the possibility of needing to pay them now, we can help you and your family make the best choices.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
* Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James's Place and are not regulated by the Financial Conduct Authority.
1 Age UK, Paying for a care home, December 2023
2 Care Home UK, January 2024
3 Age UK, Paying for a permanent care home placement in Wales, April 2023
4 Laing and Buisson Care Homes for Older People, 32nd edition, 2022
Without good advice and careful planning, HM Revenue and Customs could be the biggest single beneficiary when you die.
Inheritance Tax (IHT) has an increasingly broad reach. Its impact on a modest estate can be dramatic. On a large estate it can be huge.
There are various ways you make the best of Inheritance Tax:
- Have your Will written and planned correctly to save the maximum amount of tax*
- Transfer assets through prudent use of lifetime gifts
- Create a tax-efficient fund so that your beneficiaries can pay any taxes due without dipping into their inheritance. Under current IHT legislation, pensions can play a considerable role here.
Working alongside leading law firms on the St. James's Place legal panel, we can help with a range of legal services, including Inheritance Tax, marriage issues and general tax planning.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount initially invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
*Will writing involves referral to a service that is separate and distinct to those offered by us. Wills are not regulated by the Financial Conduct Authority.
When it comes to taking full advantage of Inheritance Tax exemptions, gifting can be a valuable option.
There are several approaches you can take. We can help you to understand which are available and which are best suited to your circumstances.
For example, are you aware that you have a £3,000 annual exemption for gifting, which can be carried forward for one year if unused? You can also use income to fund the contributions to a life policy held in Trust*, which can be exempt if you meet certain criteria.
A parent can gift up to £5,000 tax-free to their child who is getting married.
More exemptions include gifts to charities, and donations to political parties or institutions that exist for public benefit, such as universities, national museums, and the National Trust.
Larger gifts, which sit outside the general IHT exemptions noted above, can also have an inheritance tax (IHT) benefit where, generally speaking, the gift is made more than seven years before death.
The information on this website is based on our interpretation of current law and HMRC practice.
Taxation legislation and HMRC practice may be subject to unforeseen changes.
*Trusts are not regulated by the Financial Conduct Authority.
Estate administration is the process of dealing with legal, financial and personal tax affairs after death.
It involves obtaining a grant of probate (confirmation in Scotland). But this is just one part of the process.
All assets need to be dealt with. These could be property, investments, personal possessions and liabilities, such as outstanding debts and estate expenses.
Other aspects could include:
- Notifying beneficiaries and dealing with their questions
- Redirecting post and cancelling or transferring utilities
- Dealing with any Income Tax liabilities
- Advising on the distribution of assets to avoid or mitigate tax liabilities
- Calculating and paying Inheritance Tax where relevant
- Dealing with specialist legal work.
You might want to administer an estate by yourself, but please be aware this could take a considerable amount of time and effort. It also leaves you liable for any mistakes you might make.
The issues you’ll face after the death of a loved one are rarely straightforward. That's because they involve procedures most of us aren’t used to dealing with, and financial matters are often the last thing on our minds in this situation.
SJP have chosen Kings Court Trust as their preferred provider of estate administration. Kings Court Trust is one of the leading specialist estate administration service providers in the UK and, like us, they place their clients at the heart of everything they do.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is dependent on individual circumstances.
The services provided by Kings Court Trust are separate and distinct from those offered by St. James's Place.
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