Planning your finances for the future is something which affects us all. Whether it’s saving to buy your next home, building a property portfolio, or exploring tax efficient inheritance planning to transfer funds or assets to children or grandchildren, having an effective plan and strategy in place is crucial at every stage of life. 

In our latest blog, Sue Allen, Head of Financial Planning at Chester Rose, explores the many ways in which a robust financial planning strategy can help you reach your financial and property goals, whatever they may be.  

Planning for your future

When it comes to financial planning, what matters most is that a tailored approach is taken. Everyone has different goals in life. At Chester Rose, their team of experienced financial planners’ philosophy is to get to the very heart of a client’s personal vision and aspirations to create a clear and structured plan that protects their wealth for themselves and future generations.

“Chester Rose works with many people who are self-employed, building their own businesses or growing their portfolio of assets, often including property,” explains Sue. “While retirement may seem a distant milestone, the earlier you start planning for your future, the stronger the position you’ll be in.

“It’s important to find the right balance between enjoying yourself and saving to reach your long-term goals. It’s also very important at every stage of life to have the appropriate protections in place, for example, in case you become unwell and can’t continue to work. This is particularly important for self-employed people, and is another area in which working with a financial planner can be valuable.

“Our role is all about educating and empowering people at every stage of life to ensure they take the right steps to reach their goals.”

Tax efficient inheritance planning 

Sue adds that one of the most common reasons clients come to her is that they want to pass wealth over to the next generation, but don’t know how to do it in a tax efficient way. This is where effective estate planning is essential, particularly in light of the changes to tax which came in with the 2024 Autumn Budget. 

“What you can do with your main residence is limited, so you need to consider other angles if you’re looking to mitigate inheritance tax,” says Sue. 

“The most straightforward way of passing money or assets onto the next generation is to gift it, but as you may be aware, there is a seven year rule in place which means if you pass away within seven years of giving a gift, the beneficiary will still have to pay inheritance tax. This is why, where possible, starting the planning process early is of real advantage. Some inheritance planning products only have a two year rule, but these tend to be higher risk.

“Another problem which some of my clients have with gifting is that while they want their child or grandchild to have access to the money, they don’t want that person’s partner to have any rights to it should the relationship break down. There are various ways around this, for example, gifting the money or property via a trust which continues to have control over it, keeping family money protected against risks such as divorce or bankruptcy.

“If you’re not looking to pass on wealth immediately, but want to reduce the inheritance tax which will have to be paid when you pass away, there are many options available, for example, making use of specific inheritance tax products which allow you to invest in a portfolio of smaller businesses. HMRC exempts money invested in these from inheritance tax because it wants to encourage this kind of investment. However, there have been changes announced to these types of investments and others in the latest budget, so even more care needs to be taken when selecting suitable products. 

“From April 2027, pensions will be viewed as part of your estate and thus will no longer be free of inheritance tax. Additionally, the cap on business property relief will have a huge impact on business owners looking to pass that company along to the next generation. The risk of further restrictions in the future makes tax efficient inheritance planning more complex than ever, which is why I’d strongly encourage you to start planning as early as possible.”

Reaching your goals

Whatever your goals and aspirations may be, tax efficient inheritance planning or otherwise, working with the right team of professionals is a vital part of achieving them. If this includes property acquisition,  being represented by dedicated consultants like Bradbourne is a great way to take the stress out of a property search and ensure you don’t make mistakes that may affect your future. With our extensive professional network, as well as decades of experience in the industry, we’re here to support you every step of the way in making your property dreams a reality. 

Thank you so much to Sue for partnering with us on this blog. To find out more about Chester Rose and the range of services they provide, click here

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients resident in the UK only. 

The Financial Conduct Authority does not regulate estate planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Chester Rose Financial Planning Limited is authorised and regulated by the Financial Conduct
​Authority. FRN: 726620.  ​Registered in England and Wales. Registered Office: : 53 Bartholomew Street, Newbury, Berkshire, RG14 5QA Company Number 5835113