This is common mistake and unfortunately it is one which can result in a large portion of your estate being taxed by the government, especially if you are planning to leave property to your children. Whilst inheritance tax thresholds may remain the same over the years, in most countries, house prices are rising beyond the threshold meaning more and more people are getting stung for large amounts of tax on their inheritance.
After working hard for several years and painstaking planning in terms of your finances, we all find ourselves at a crossroads, and we must make important financial decisions. It is normal for you to wish to leave something for your loved ones. The assets you have accumulated are yours to do with as you please. That said, your final will and testament should be drafted sooner rather than later and plans should be made in advance.
In today’s world, anything can happen and getting caught off guard is a real possibility. Future preparations aren’t limited to your pension plan. You also need to consider whether you wish to acquire additional assets, plan how to fund your retirement and decide how your assets will be dispersed upon your passing.
When leaving your estate to a certain person or people, you need to take into account that the person you bequeath your estate to could incidentally pass away along with you or even prior to your death. Your will should include a clause that dictates where your estate is to be redirected in such an event.