inheritance disputes

Avoiding Disputes With Inheritance Passing

havenifa

havenifa


Posted on: 25th November 2022

You know the old saying: Where there’s a will, there’s a way – for someone to feel entitled to more. Inheritance disputes are the sour aftertaste of a person’s passing that can damage family relationships and provide lasting conflicts.

The entire point behind creating a will is to leave your inheritance to your children and grandchildren to make their lives better moving forward. Unfortunately in a lot of cases, it tends to cause bitter disputes and estrangement because someone got something of better value than they did.

There are some steps you can take at an earlier stage to negate these conflicts and leave a more enduring legacy that is positive.

Clearly Define Your Wishes

Having your paperwork in order and providing clear instructions reflecting your wishes is always going to be the starting point. Your will needs to be up-to-date, important documents in an organised state and a maintained list of assets – including pensions, savings, investments and bank accounts and property.

It is best to periodically update these items, especially in the face of any big life changes such as new additions to the family. We all know that money and death are hard conversations to have with family, but being open with your wishes helps everyone to be on the same page.

If your loved ones understand your decisions then it goes a long way to avoiding internal conflicts. You can even have independent financial advisers Manchester in the room to help the conversation go smoothly and explain all technicalities.

Equalising Assets

Having a large asset in an estate that is not an easy split – such as property or another physical asset – can pose a big problem when left between multiple parties.

One potential solution could be earmarking a pension fund for children who don’t stand to inherit a family home or similar type of asset. As long as the pension is passed within two years of death, it will not be liable for inheritance tax. Another option could be to take out a life insurance policy that will pay out a set amount to chosen beneficiaries when you pass away. Provided the policy is written in trust, it won’t form a part of your estate for IHT purposes.

Making gifts whilst you are still alive may prove more efficient from an IHT perspective than passing on assets following your death. This even allows you to see your loved ones benefit from your wealth whilst still alive. Of course, in taking this route you will need to consider your own existing financial needs – including future care costs – which means you need to discuss all options with independent financial advisers Cheshire.

Contact the team at Haven IFA today for ease in planning what happens to your future investments, pensions and estate for your family.

Posted in IHT