Summary:
Focused IHT Discussions: Tailored for step-by-step IHT planning conversations with clients.
Estate Today Analysis: Includes liquid and non-liquid assets and debts, highlighting pensions outside the estate.
IHT Allowances: Considers Nil-Rate Band (NRB), Residence Nil-Rate Band (RNRB), single and couple rates, and estate tapering thresholds.
Estate Distribution: Emphasizes wills, distribution, and charitable donation benefits.
Gifting Strategy: Incorporates PET, CLT, wedding gifts, annual allowances, and the 7-year rule.
Visual Results: Offers IHT evolution graphs and detailed annual breakdowns.
Cashflow Modelling Integration: Ensures balanced IHT planning aligned with financial sustainability.
Demo
Introduction
In the complex world of financial planning, discussing Inheritance Tax (IHT) with clients can be challenging. Timeline's IHT Planner is meticulously designed to facilitate these conversations, focusing on one aspect at a time to avoid overwhelming clients. This tool not only simplifies the IHT planning process but also empowers advisors to engage in powerful, clear, and structured discussions about estate planning.
Step-by-step conversations:
Step 1: Estate Today: This initial step sets the stage for a clear understanding of the client's financial standing
Comprehensive Asset Analysis: The planner begins with a detailed assessment of the client's current estate, including both liquid and non-liquid assets.
Pension Considerations: It highlights how pensions fall outside the estate and impact overall IHT planning.
Step 2: IHT Allowances: This step allows us to understand tax liabilities, which is crucial for determining potential tax liabilities and planning strategies.
Step 3: Estate Distribution: We focus on the client's will and how the estate is planned to be distributed.
Charitable Donations: Discusses the benefits of donating to charity, including the potential impact on IHT liabilities.
Step 4: Gifting Strategy: Helps in developing a gifting strategy, an essential aspect of reducing IHT liabilities.
Step 5: Results and Visualization:
IHT Evolution Graph: Provides a dynamic graph depicting the evolution of IHT over time, enabling advisors to illustrate the impact of early planning.
Detailed Breakdown: Offers a year-by-year breakdown for transparency and detailed discussions.
Integration with Cashflow Modelling
The IHT Planner's integration with cash flow modeling ensures a balanced approach to IHT payments and financial sustainability. This feature allows advisors to align IHT planning with the client's overall financial strategy, ensuring long-term financial security.
Conclusion
Timeline's IHT Planner is designed to facilitate meaningful and clear conversations about IHT planning. By breaking down the process into manageable steps and integrating comprehensive asset analysis with strategic planning, the tool enables advisors to guide their clients through estate planning with confidence and clarity. This approach not only simplifies IHT discussions but also ensures that clients are well-informed and comfortable with their estate planning decisions.