The Importance Of Tax Planning For Your Family
Making the most of your allowances ...
POSTED BY HELEN BEAUMONT ON 01/12/2017 @ 8:00AM
We all want to ensure our family are comfortable as we ourselves get older. Tax planning for your family is a vital role in this to ensure you make the most of your money for yourself, your spouse and your children ...
Tax planning for your family goes way beyond a piggy bank!
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There should be three main objectives in your plan. These are about making the most of your tax-free allowances and reliefs, keeping your marginal tax rates as low as possible and maintaining a spread between your income and your capital.
"There are many ways to create opportunities to save when tax planning for your family!"
One example would be to transfer assets to your spouse if they pay income tax at a lower rate as this could also cover amounts of capital gains tax on a future sale by using their tax free allowances.
As far as your children are concerned, you can make use of a Junior ISA so that family members can build a fund to help with university fees, helping them start their career debt free once they leave full-time education.
Children still have their own personal tax allowance and as long as income is less than £11,500 per year, there is no tax to pay providing the capital does not originate from their parents. If income arising from parental gifts is greater than £100 this will be taxed on the parent unless the child has reached the age of 18 or is married.
The £100 limit on income does not apply to income on gifts into a National Savings Children's Bonus Bond. The child pays tax on Income from capital gifted by grandparents or other close relatives, as income distributions from any trust funded by such capital.
One vitally important thing to consider is about making a Will. What would happen to your spouse or children if you didn't have one and you died tomorrow?
Beyond a Will, ensure you have adequate insurance cover, with life assurance written into trust for your spouse or children which allows quick access to funds. Despite repeated campaigns, it is believed that three-quarters of adults still do not have an up-to-date Will.
"Would you like to know more?"
If you'd like to learn more about tax planning for your family then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!
More about Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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