Silver Linings - is now the time to consider estate planning?

Analysts are warning the current economic crash may be worse than the 2008 Financial Crisis. With wealth decreasing, you may consider this a bad time to give to family members. Critically, you should not give away more than you can afford: you must have enough to guarantee your own security. But, if you have sufficient wealth to weather the storm, this may be a golden opportunity for estate planning.

Historically, economic crashes are followed by periods of faster economic growth, so asset values may bounce back. If so, planning now grants numerous benefits.

Capital Gains Tax will be lower. Family trusts are limited by a tax free cap of £325,000/person (a couple can establish a trust with £650,000). With asset values depressed, more can be transferred into a trust tax free. Larger gifts to family members are possible, and the value at the time of gift may be subject to Inheritance Tax if you die within seven years, but future growth is tax free.

Now may also be a time when children or grandchildren are most in need of financial support. If you can afford to give assets away, this may be your best chance to do so.


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Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.

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