HNW individuals reviewing their wealth planning

HNW individuals reviewing their wealth planning. New research from Rathbones reveals almost half of HNW (45%) have reviewed their wealth planning in the past year.   

Notably, with 20% of high-net-worth (HNW) individuals stating it was the general election that prompted them. When asked what changes they had made, 12% said they had brought forward gifting plans. 

Whilst, a further 16% said they had altered the essence of their planned financial gifts. 

Consequently, this implies taxpayers are worried about being hit by changes to IHT.  However, Labour has not currently announced any plans to hike IHT rates or reduce the nil-rate band. 

Should you review your Financial Plan?

Furthermore, 25% said they had reviewed their financial plans due to interest rates staying high.  Another 17% reported changing their investment strategy in the past 12 months. Cuts to interest rates are expected at some time in 2024.  This could mean it is a good time to lock into higher saving rates.

What about Inheritance Tax?

Besides, issues like inheritance tax might sound like they only impact the rich.  But if a single parent leaves their estate to their children, the recipients could be forced to pay inheritance tax as soon as the value of the estate exceeds £500,000. 

Similarly, an unmarried person who chooses to leave their estate to someone other than a child or grandchild (or other direct descendant) won’t qualify for the residence nil-rate band. This means they can only pass on £325,000 before tax is due.

Finally, with the UK tax burden at a record high, anyone who is saving or investing for the future should be thinking about how they can do this in the most tax-efficient way possible.

Two of the simplest steps you can take include 

    •  Using your annual ISA allowance

    •  And, paying into your pension.

HNW individuals reviewing thei wealth planning. To understand how we can help you with your financial planning and long-term retirement goals, call us today. For a free initial consultation, call us on 01603 957599.

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