The Three Essential Conditions You Must Meet

For a gift to qualify for the 'Gifts from Surplus Income' exemption, you must satisfy three crucial conditions:

1. From Income, Not Capital: Gifts must come from your regular income (pension, salary, dividends, etc.) after all your usual living expenses are paid, not from savings or asset sales. It's about genuine 'surplus.'

2. Must Be Regular: The gifts need to form a habitual pattern—monthly, quarterly, or annually—demonstrating a clear intention to make ongoing payments.

3. Maintain Standard of Living: After making gifts, you must still have enough income to maintain your usual lifestyle without financial strain or dipping into savings.

Remember, your executors will claim this exemption using form IHT403, so thorough record-keeping is vital.

Are you thinking about helping your children or grandchildren financially—perhaps with a house deposit or university fees—but you're worried about how it might affect Inheritance Tax? You're not alone. Many of our clients at Westwood Estate Planning want to be generous now, while they're here to see their family benefit, but they're unsure about the rules and don't want to create problems down the line.

The '7-year rule' is one of those phrases that gets mentioned a lot, often causing more confusion than clarity. In this article, we'll break down exactly how it works, what gifts are affected, and—most importantly—how you can make gifts wisely to reduce your potential Inheritance Tax bill while supporting the people you care about.

By the end, you'll have a clear understanding of this essential rule and practical steps you can take today.

We've noticed a lot of discussion online about the upcoming £10 increase to Lasting Power of Attorney (LPA) fees. Some people are genuinely annoyed about it, and we get that—nobody likes seeing costs go up. But we think the conversation is missing the point.

In this article, we'll explain what's actually changing, why it's happening, and—more importantly—why the protection an LPA gives you matters far more than ten pounds. By the end, you'll understand the new fees, but also why they shouldn't be the thing you focus on.

Inheritance Tax, or IHT, is a tax on your estate when you pass away, a concern for many families who want to preserve their wealth for loved ones. While it can feel daunting, understanding a few key exemptions can make a big difference.

These exemptions help you reduce potential tax, protect your hard-earned wealth, and offer legitimate ways to pass on assets without incurring the 40% Inheritance Tax charge. This brings immense peace of mind.

At Westwood Estate Planning, we pride ourselves on a thorough and empathetic approach to help you explore all potential solutions, ensuring you make informed decisions that protect your family's future and provide you with genuine peace of mind

Have you ever felt frustrated thinking about Inheritance Tax (IHT) in the UK? Many wonder why they pay tax again on earned money, or believe IHT is 'optional.'

At Westwood Estate Planning, we cut through the confusion, explaining who IHT truly affects, including the impact of upcoming changes like pensions from April 2027.

We offer empathetic guidance and a comprehensive approach to help you understand your options, protect your family's future, and gain genuine peace of mind. Ready for clear answers? Book a free, no-obligation 15-minute chat with us today

Securing Your Future: Understanding Lasting Powers of Attorney (LPAs)A Lasting Power of Attorney (LPA) is a vital legal document allowing you to appoint trusted individuals (attorneys) to manage your affairs if you lose mental capacity. It's your way of ensuring your wishes are respected and your future is protected. Our comprehensive guide answers the top 5 questions we hear most often about LPAs:

1. What is an LPA? There are two types: Property and Financial Affairs (managing money/property, usable before or after capacity loss) and Health and Welfare (decisions on daily routine, medical care, only usable after capacity loss).

2. What Happens If You DON'T Have an LPA? Without one, your loved ones must apply to the Court of Protection for a costly, time-consuming, and restrictive 'Deputyship' – meaning you lose control over who makes decisions for you.

3. Choosing Your Attorneys: 'Jointly' vs. 'Jointly & Severally' is CRUCIAL. 'Jointly' means all must act together (risky if one is unavailable), while 'Jointly and Severally' offers flexibility, allowing attorneys to act independently or together.

4. When Does an LPA Actually Come Into Effect? An LPA becomes legally valid and usable only once it's registered with the Office of the Public Guardian (OPG), a process that can take 10-16 weeks. Proactive registration is key.

5. The Attorney's Role: What Are Their Responsibilities? Attorneys must always act in your best interests, support your decisions, keep accurate records (for financial LPAs), and avoid personal benefit.

Key Takeaways: You can choose one or both LPA types. While you can complete forms yourself, professional guidance ensures accuracy. Attorneys can live abroad, but practicalities should be considered. At Westwood Estate Planning, we provide expert, empathetic guidance to ensure your LPAs are legally sound and truly reflect your wishes, offering lasting peace of mind. Ready to secure your future? Book a complimentary, no-obligation 15-minute chat with us today to discuss your specific situation: https://calendly.com/westwoodep/chat

Are you constantly worrying about what might happen to your family or your assets if something unexpected occurs?

At Westwood Estate Planning, our promise is simple: to help you 'Protect your loved ones, secure your peace of mind.' We simplify complex estate planning processes, ensure your wishes are honoured, and provide ongoing support so you can live with confidence today.

Discover how our empathetic and straightforward approach can remove your worries and secure your future

Considering a Lasting Power of Attorney (LPA) and wondering if professional help is right for you?

This article from Westwood Estate Planning offers complete transparency, clearly outlining who our empathetic, expert-led LPA service is meticulously designed for, and just as importantly, who it might not be the best fit for.

Discover if our comprehensive approach, focused on thoroughness, ongoing support, and lasting peace of mind, aligns with your needs.

Ready to explore your options with clarity and confidence? Book a complimentary, no-obligation 15-minute chat with us today.