This quarters edition of

Generational Information Newsletter

Generational Planning Group, we provide expert guidance to help you manage your financial future with confidence. Explore our resources and take control of your financial well-being today.

Chairman's Chat

Bearing in mind the changes in the 2024 budget, you will see the need for advice on this and all other generational planning is now paramount. Given that 43% of all the money invested in the UK is in pension funds, it is not surprising that the Chancellor decided that this is a place for future growth in the Exchequer’s Coffers!

Over the next 30 years, £5 trillion of assets will pass over to the next generation; this is the largest wealth transfer in UK history. Obviously, HMRC see this as a significant potential source of tax revenue into the Exchequer and for this reason I suspect we will see further changes in taxation on wealth transfers and generational planning.

Thankfully, there are still plenty of legal ways to deal with the taxation that arises when we move assets from one generation to the next, but it is crucial that any such planning remains HMRC compliant.

Our main aim at Generational Planning Group (GPG) is to help design legal and tax efficient ways to achieve effective IHT mitigation. In particular, the use of trust planning is going to become very important as the new rules come in. We have been dealing in this area for over 35 years and now consider it to be our main specialism.

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Preserving your Pension

WHAT can be done to preserve my pension?

By combining three separate elements, all of which are HMRC compliant and already in widespread use, it is possible to protect the value of what our family inherits from our pension.

The planning utilises specialist trusts and has been developed to replace the tax taken by HMRC from your pension fund, both on any withdrawals and after death. The result is that your beneficiaries can inherit and benefit from a tax free lump sum, rather than a pension fund that would be subject to further tax on withdrawals. The pension owner and any spouse will still be able to derive benefits from the pension fund in their lifetime. If the pension owner and spouse do not need income from the pension fund, then this money can be used to enhance the tax-free lump sum that is left to the beneficiaries.

ISA's Saving Investments

Over time we tend to build up a whole collection of different investments and cash holdings. The desire to have a mixture of different funds and the best rates on our savings drives us to achieve diversity. However, as we get older our enthusiasm to ‘search the market’ slows and we can end up with a big collection of unmonitored holdings, many of which are underperforming and have high charges.

This is particularly true if the more financially knowledgeable spouse dies or loses mental capacity. This can lead to lengthy probates and increased IHT liabilities.

At GPG we will look at the best way to consolidate investments, make sure they are independently and professionally monitored and more often than not, help reduce the running costs.

IHT Estate Planning

Of all the assets we try to pass on to our family, property is by far the most complex. With the majority of IHT, collected by HMRC, coming from property, it is the most important part of your planning to get right.

At GPG will concentrate on how to transfer the family home, second/holiday homes and investment property in the most tax-efficient manner.

Wills

 

Making a Will ensures that your wishes are carried out and your loved ones are taken care of after you’re gone. Without a Will, the law decides how your estate is distributed, which may not align with your intentions.

Why make a Will:

  • Ensure your assets go to the right people
  • Appoint guardians for your children
  • Minimise family disputes
  • Protect your estate from unnecessary taxes
  • Give yourself peace of mind

Power of Attorney

 

A Lasting Power of Attorney allows someone you trust to manage your affairs if you become unable to do so. This can include financial decisions, healthcare choices, and property management.

  • Choose who will act on your behalf
  • Ensure your finances and welfare are in safe hands
  • Avoid costly and stressful legal proceedings for your family

Funds and Providers

 

Under the direction of your GWM adviser, the chosen product provider e.g. Quilter, Utmost, 7IM.

Invests your money onto a platform, where it is allocated to the Fund Managers selected by you and your GWM adviser e.g. Rathbones Shrouders, Vanguard.

Your GWM adviser monitors your Funds’ performance and will switch and review your holdings on a regular basis.

Topical articles for your pursual, some food for thought

Sourced from The Financial Times

Sourced from The Financial Times

Sourced from The Telegraph

Sourced from The Telegraph

Cryptic Finance Crossword

Challenge Your Financial Acumen

Engage with our cryptic finance crossword and test your knowledge on financial terms and concepts. Perfect for enthusiasts looking to sharpen their skills.

Standard

Across:

2. Interest or Mortgage (5)

5. Economic theme with a play on debt/credit (7)

6. A stretch but fair in the financial lingo (5,4)

8. Money owed to HMRC (3)

Down:

1. The top has fallen off the leaning tower – it can be saved (3)

3. One financial, one surface reading as excuse (7)

4. Anagram of “nip one s” (7)

7. Get back what’s been wrongly tax (7)

Cryptic

Down:

1. The top has fallen off the leaning tower – it can be saved (3)

3. One financial, one surface reading as excuse (7)

4. Anagram of “nip one s” (7)

7. Get back what’s been wrongly tax (7)

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Generational Wealth Management is a trading name of Generational Wealth Management (IFA) Ltd which is an appointed representative of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority.  Generational Wealth Management (IFA) Ltd is entered on the FCA register (www.fca.org.uk) under no. 918757.  Registered Office: 19 Montpelier Avenue, Bexley, England, DA5 3AP.  Telephone: 01732 647111.  Registered in England and Wales Number: 12122808. 

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