Throughout your lifetime, you are likely to have accumulated a substantial estate of property, investments, cash and valuable belongings. When you die, you will understandably want to ensure that your beneficiaries get the full benefit of your legacy.

Putting in place the right solution for administering your estate can ease the pain and pressure for your family. However, families are still not getting it right and last tax year more than £5 billion was paid in death duties, the highest figures on record, according to HMRC (April 2018). Inheritance Tax is generally paid if the value of your estate is above the £325,000 nil-rate band. However, if the value of your estate does not breach the nil-rate band, and you are married or in a civil partnership, your unused threshold can be added to your partner’s when they die.The rise in house prices means that property is expected to account for over 70% of the wealth transferred in the coming years and this surge in property values will mean that more families will be liable for IHT, making the estate administration process even more complicated.

There are of course steps you can take to minimise the amount of IHT that your family will need to pay after you’ve passed away. One of the most interesting ways to minimise your IHT liability is by using the normal expenditure out of

income exemption. This is potentially the most generous exemption as it has no defined monetary limit and is often ignored in favour of the distracting £3K a year limit most people know. The maximum that can be gifted is instead determined by the amount of surplus (or spare) income which, when gifted, does not affect your standard of living, and thus provides a large degree of flexibility. When considering the future, to guarantee that your assets pass down to the people you want them to, it is important to have either a Will*, set up an Asset Preservation Trust or fill in an Expression of Wish form, all of which can be discussed with Daniel and Pawan.Planning ahead with all of this in mind can help to ensure you leave more for your loved ones and remove much of the burden and stress they can encounter in dealing with your estate.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.

*Please note that advice relating to a Will involves the referral to a service that is separate and distinct to those offered by St. James’s Place.

Wills are not regulated by the Financial Conduct Authority.

Protecting Your Assets

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Senior Partner Practice of St. James’s Place Wealth Management

DENHAM WEALTH MANAGEMENT LLP

The first half of 2018 has been a busy one, both for the Practice and for St. James’s Place. With new procedures and regulations coming into force, the team have been working hard to maintain our high levels of service. However, we would also like to thank our clients for taking time to help us fulfil our responsibilities for the new GDPR rules. It is much appreciated!

If you have any questions, or would like more information on the topics covered, we’re always on hand to assist you, so please do get in touch.

Welcome to our Summer newsletter

DANIEL DENHAMSenior Partner Denham Wealth Management LLP

Tel: 01491 821 044 Email: daniel.denham@sjpp.co.uk Web: www.denhamwm.co.uk

Denham Wealth Management client events

We will be hosting a series of events throughout the year for our clients and friends to enjoy. If you are interested in attending any, then please do get in touch.

Monday 16 July10am – 1pmLater Life Planning presentation at The Vineyard, Berkshire.

Following a presentation, you will have access to the grounds. Please note, Daniel Denham will be speaking at this event.

Thursday 23 August 6pm – 10.15pmIntergenerational Wealth at Bombay Sapphire.

Following a presentation, you will have a tour and cocktail masterclass.

Thursday 20 September 10am – 2pmGeneral Investment Update at Blenheim Palace, Woodstock, Oxon

Following a presentation, you will have lunch and access to the grounds.

Should you wish to attend any of these events please contact Laura Wood on 01491 821 044 or email laura.k.wood@sjpp.co.uk

Save the Date

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Top up your pension pot while the current allowances remainWith speculation over whether the government will reduce allowances and reliefs on pensions, you should (subject to eligibility) consider boosting your pension savings now and make the most of available allowances in this tax year, so that you can potentially benefit from higher rates of tax relief on your contributions. Please note that anything over the basic rate of tax must be reclaimed via your annual tax return. Don’t waste your annual Capital Gains Tax exemptionBy crystallising gains each year up to the limit of your allowance, you can reduce the risk of a larger CGT bill in the future. Better still, reinvesting the proceeds into tax-efficient wrappers such as ISAs and pensions could potentially avoid any future CGT liability all together. Don’t forget that assets can be transferred tax-free between spouses to utilise both allowances. Review your taxable incomeHigh earners could take steps to bring their taxable income down by making pension contributions or charitable donations.

Take income from savings tax-efficientlyIf you’re thinking of making a large pension withdrawal, it could make sense to spread the withdrawal over two or more tax years to help minimise your Income Tax liability.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Tax Freedom Day is the day each year when you finally stop working to pay tax to the Government and start earning money for yourself. Historically this occurs in early June. However, there are ways in which you can lighten your tax burden with specialist advice and you may be surprised at some of the ways in which you can improve your tax situation.

Use your ISA allowanceBy maximising allowances in this and the next tax year, a couple could potentially shelter up to £80,000. Remember that there is no tax to pay on the transfer of assets between spouses and civil partners, making it easier to ensure both allowances are used. You can also make contributions of up to £4,260 per child into a Junior ISA each tax year.

Pawan’s View – Tax Freedom Day

Tel: 01491 821 044 Email: daniel.denham@sjpp.co.uk Web: www.denhamwm.co.uk

You should have recently received your Unit Trust Consolidated Tax Certificate for the 2017/2018 tax year from St. James’s Place. Please remember to keep hold of this as it is extremely useful, regardless of whether you need to complete a tax return.

Important Reminder

Denham Wealth Management has recently purchased two automatic defibrillators for local businesses as part of our commitment to supporting the Wallingford community. Defibrillation within 3 – 5 minutes after cardiac arrest can produce survival rates as high as 50 to 70% 1 so we are delighted to have installed public access defibrillators at Queenford Waterski Lake in Berinsfield and South Moreton Boxing Club. It is great to be able to donate something to our local community that could one day save a life.

1 British Medical Journal, April 2016

Defibrillator donations

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contribution summaries in coordination with the Advisers. Although a lot of our work is done behind the scenes, every member of the team also enjoys the regular interaction we have with clients. Once your meeting has taken place, we then become your main point of contact. We will contact you to gain further information, move the case along, fact find, handle withdrawals and generally guide you through the process.

As some of you may have seen in recent meetings, we are trying to arrange for one of us to now sit in on meetings with

you where possible, to gain knowledge and experience and ensure that we have the necessary information to do our jobs efficiently and move your case forward. It is also an effective way for us to build up our relationships with you so that we are more than just a voice on the end of the phone.

We all have a background in Economics or Business but the whole team are working towards gaining the Chartered Insurance Institute (CII) Diploma in Regulated Financial Planning.

The Paraplanning team of Flora, Jack, Ben and Mehwish may be familiar to some of you, but do you know what their role is within the Practice? Here, Flora Grove-Smith our Senior Paraplanner offers her view from the inside.

As Paraplanners our main job is to offer administrative and technical support to the Advisers. We have to ensure that business cases are processed accurately and efficiently. The Paraplanner will do the calculations, write letters, handle compliance, liaise with the Admin Centre, deal with tax allowances and do

View from the Inside – Flora Grove-Smith, Senior Paraplanner

Tel: 01491 821 044 Email: daniel.denham@sjpp.co.uk Web: www.denhamwm.co.uk

Unfortunately, the weather stopped us in our tracks and we have deferred our entry into the Rough Runner race until next year, so watch this space!

Charity update

Our latest expert article comes from Solicitor Clare Young, from BPE Solicitors.

Figures suggest more than half of the UK population has not made a Will1 and a significant percentage don’t make one before reaching old age. There are many reasons why making a Will shouldn’t be delayed, and individuals who die without having made their wishes clear risk a number of consequences.

Nominating BeneficiariesWithout a valid Will, your estate will pass according to the rules of intestacy, set rules which are unlikely to suit everyone. Under the rules of intestacy, unmarried partners are unlikely to receive anything and with the rise in unmarried partnerships, this is a growing issue. You may also have specific items or wishes such as cash gifts to individuals

The Partner Practice represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’

and the title ‘Partner Practice’ is a marketing term used to describe St. James’s Place representatives.

1 St. Mary’s Court, Wallingford, Oxfordshire, OX10 0EB

T: 01491 821 044E: daniel.denham@sjpp.co.ukW: www.denhamwm.co.uk

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or charities which will not benefit under the intestacy rules.

Appointing ExecutorsMaking a Will allows you to appoint the people who will administer your estate, called your executors. You will probably want to appoint executors you can trust and who have the ability to make decisions that will ensure your estate is distributed in line with your wishes. You can also appoint a professional if you don’t want to nominate a family member.

Appointing GuardiansIf you have young children, a Will enables you to name trusted people to take care of them if something unexpected happens to you. Guardianship can be hotly contested, with many relatives wanting to help in times of bereavement. Formally appointing a guardian in your Will gives you control and should prevent any disputes arising.

Inheritance Tax While some tax allowances apply to your estate automatically, others need to be planned for and claimed. A

Information point – Have You Made Your Will Yet?

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Tel: 01491 821 044 Email: daniel.denham@sjpp.co.uk Web: www.denhamwm.co.uk

well-structured Will can enable your executors to make use of all available allowances and could potentially prevent your estate from paying any tax at all.

ProtectionMaking a Will enables you to protect assets from expensive care fees and allows you to balance the interests of various family members such as the children from an earlier marriage/relationship and a current spouse/partner. If you have vulnerable family members, a suitably structured Will can protect their inheritance for them.

Avoiding Family DisputesBy taking care and putting in place a properly thought over Will, it can mean that the potential for any dispute within the family is sensitively managed avoiding problems later.

Please note that advice relating to a Will is separate and distinct from those offered by St. James’s Place.

1 Unbiased.co.uk, September 2016