Inheritance tax planning and trust

[Muminthemiddle22]

Looking for some advice on what to do and how to do it!

Unfortunately I've been diagnosed with cancer. The outlook is uncertain, at best. I'm trying to get my ducks in a row.

I own my house with my husband, and have 2 life insurance polices (1 through work and 1 privately) which will pay after my death. Total payout would be around £1.5million

Also have £100k in cash / easy access investments

I have 2 primary age children and I'm looking for the best way to secure their future. I would want my DH to be happy eventually (obviously after an appropriate amount of time!). But thinking realistically if he re-married I want my children ti largely benefit from my estate.

Does anyone have any advice where to get the best advice for this type of planning? Is it a financial advisor, wealth advisor, solicitor to set up a trust etc? And what type of trust?

Thanks a lot.

Firstly I'm sorry about your diagnosis, and hope for the best outcome for you.

And well done for thinking about the practicalities.

Go and see a solicitor. I recently wrote my will and sitting down with a solicitor made the whole process really easy. They were able to answer my questions, make suggestions and ask questions that I hadn't thought of. They will know what to do in your situation.

Edited for a typo.

Sorry to hear of your diagnosis and best wishes for your treatment.

What you need is a specialist solicitor. Some sort of local firm with lots of experience that’s been around for donkeys years.

You need a financial advisor.
Before my DH passed, he was advised to move his self-invested pension into a trust based one - a legacy preservation trust. Thank goodness he did. If he didn't, it would have been taxed.
A financial advisor will plan out all priorities sensitively and advise you on the right path for your money. Speak to the advisor as a couple, so your wishes are heard. A solicitor will then create trusts if that's the right thing to do. Our financial advisor recommended a solicitor for this.

Just to add to the previous replies, there is a body called the Society of Trust and Estate Practitioners (STEP).

Solicitors that have qualified for membership of this organisation really do have a lot of knowledge about estate planning.

If you google "STEP solicitor [name of your town]" then that will give you a list of local solicitors that belong to STEP.

[EDIT]

Just as an example of why you need to do this. I searched locally and when I looked at the local branch of a national chain of solicitors I saw that the person who was the "Head of the Estate Planning team" in my local branch wasn't actually a full member of STEP but only a student member (and she was the "Head" of the team!)

"I am furthering my expertise by studying for the STEP diploma."

If you have a complicated situation then do look out for a solicitor who is a full member of STEP.

Well if your life insurance is written in trust, it will be outside your estate and not liable to IHT. You should be able to create a trust for your children to benefit from the insurance, simply name them as the beneficiaries with your Husband as trustee until they are 18.

I had a friend who died at 45 with a 10 year old, her parents are the trustees for the insurance and her pension.

I don’t understand a PP’s comment about an inherited pension, unless the DH was over 75, pensions are tax free ( for now) to spouses / children, no need to protect them.