Planning For Succession/Exhaustion!

Wearing two hats can be pretty exhausting !

For 10 years now I have been Marketing Partner and , in addition ,I have headed up the Private Client Dept-with not only responsibility for a dozen plus people but with a hefty workload in terms of servicing the Clients-oh and then there are the techi jobs-rewriting precedents/thinking out policy/strategy /interpreting law-old and new- etc etc

The problem is that I love both roles and wouldn't like to relinquish either!!.

This week has been a "corker" with three pretty time consuming ,work- related marketing initiatives-a Seminar on Succession Planning for Farmers which we had last night-went down like a dream/strawberries and cream!!

No 2? we are planning a Trusts Tax and Investment Seminar for the end of the month-
.....and No 3..we've hit the ground running re the May Charity Ball -invites will be out next week.
Yes ,last night went well-we had a great and informed audience and the technology behaved!!My co- speakers were very polished.

I think in such situations it is felt that I, as a farmers daughter, at least understand the farmers' usual philosophy that they are only caretakers of the land for the next genearation !!

A kindly gent even said that my passion for farming and agriculture "shone through"in my presentation

I am pretty exhausted-it feels like this week has gone on for ever -but equally exhilerated and excited-one of my IFA friends to whom I mentioned being excited about the Tax and Trusts seminar said I needed "to get out more "and everyone keeps muttering "work life balance" etc but work is part -and a big part- of life and anyone happily working for himself/herself treats work as part of life-

I'm letting my hair down this weekend-that is if I can keep awake-but it's only Wednesday and I can't yet quite see the light of the weekend!

Top Ten Tax Planning Tips

As this is my first posting I thought I would start with a list of top ten tax planning tips.

We all believe we pay far too much tax, but not enough of us are actually doing anything about it!

The housing market boom has seen an increasing number of families with assets that take them over the Inheritance Tax (IHT) threshold - leaving them vulnerable to whopping tax bills.

What is the IHT threshold? - For 2007/2008 the threshold is £300,000. IHT is paid at 40% on amounts above the threshold

Here are some top tax tips for 2007 to help stop the Revenue becoming and extra beneficary of your estate. With forward planning you can minimise the tax burden and hopefully ensure that your family does not have to share your estate with the Revenue

Use the Annual Exemption of £3000 per year with a carry forward of £3000 from the previous tax year if unused. This gift is immediately exempt in the context of calculating IHT liability

Use the Small Gifts Allowance to give £250 to any one or more persons eaxh tax year, provided the gifts are not made to the same people receiving the annual exemption. For example, use the annual exemption to make gifts to three children. If they have partners and say 10 grandchildren between them, using the annual exemption and small gifts exemption you can give tax-free gifts of £6,250 each tax year.

Marriage Gifts - parents can give £5000 each, grandparents £2500 each and anyone else £1000 with no adverse IHT implications

Make Gifts Early - on death a portion of the estate, currently £300000 is charged to IHT at 0% unless substantial gifts, over and above the exemptions have been made within 7 years of dying. If you live for 7 years after amking gifts the gifts could effectively be exempt and once again there will be a full 0% tax allowance

Double Up - make sure you and your spouse or civil partner both take advantage of the allowances and exemptions by making gifts and having assets to utilise the 0% tax band

Trusts - if you don't want to lose control of the management of your capital or your children are too young to receive direct gift, consider setting up a trust. Trusts can still be very tax effective

Agricultural and Business Assets - these attract fantastic exemptions and relief

Surplus Income - give it away and do so on a regular basis and you could fall within another exemption - Lifetime Gifts out of Surplus Income. BUT keep records and establish a regular patten of gifts to satisfy the Revenue

Property Rich but Disposable Assets poor? consider taking out a mortgage to release capital to fund gifts

Consider IHT planning through certain investments - some provide excellent IHT saving opportunities. A financial adviser can help

If goes without saying that reviewing wills, investments and pension plans regularly and taking advantage of all the exemptions and allowances is vital.