Legacy is the final phase of the wealth management journey, where attention turns to financial goals that serve others, either during one’s lifetime or after we’re gone.

As the decumulation phase progresses, it may become clear that some assets are surplus to requirements and are not needed to produce ones required level of sustainable income in retirement. This can trigger thoughts of how these assets can help loved ones navigate their own financial challenges or support charitable causes of choice.

The balance between meeting ongoing financial needs, gifting to family members during lifetime and leaving ones financial affairs in order to mitigate inheritance tax liabilities are all objectives that require careful consideration.

Wealth Planning Considerations in the Legacy Phase

The existing and projected value of an estate should be considered to establish inheritance tax liabilities and required mitigation. Inheritance tax is complex in nature, therefore getting a clear understanding of what your beneficiaries obligations to HMRC could be is the first step.

Establishing what assets may be surplus to requirements whilst specifically identifying what help close family members such as children and grandchildren may need, will form the basis of a strong legacy plan.

Well-structured legacy vehicles such as Trust based investments can be leveraged once gifting and family needs are identified. These can be utilised in balance with lifetime gifting allowances and sustainable income requirements to proactively mitigate inheritance tax liabilities on an estate.

Enduring assets with sentimental meaning such a family homes also require attention from a legacy perspective, with proactive planning lowering the probability of a forced asset sale due to inheritance tax obligations upon death.

Are you in the Legacy phase?

• You are approaching or already in retirement/decumulation.
• You have significant assets surplus to your own requirements.
• You would like to mitigate the inheritance tax obligations on your family.
• You would like to financially support your family during your later years.
• You have considered charitable giving as a personal goal.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you 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. 

Trusts are not regulated by the Financial Conduct Authority.