You can’t take it with you.

‘You can’t take it with you’ and ‘What’s the point of being the richest person in the graveyard’ are phrases I often use when looking over a financial model with clients.

What does dying with money left really mean?

  • You were a very successful saver?
  • You struck on an amazingly successful investment strategy?
  • You had an idea or business that made you lots of money?

Or perhaps it means that:

  • You died sooner than expected?
  • You were worried about running out of money so were cautious in your spending?
  • You never got to do all the things you wanted?
  • You wanted to leave money to your children?
  • You developed habits or attitudes from life that said you should not spend capital or thrift is good?
  • You never got ‘permission’?

Let’s be clear, any money you do not spend or give away which is left in your estate on death over the inheritance tax (IHT) threshold (currently £325,000) will be subject to tax at 40%.  If nothing else, this 40% loss to your wealth should make you stop and think about your money options.

Striking a balance between today and tomorrow

A great Financial Planner who has you and your family’s best interests at heart, will help you to identify how much money you need to ensure you never run out. I like to call this your ‘enough’.  With ‘enough’ ring fenced, your Financial Planner will then help you develop a strategy to:

  • Be kinder to yourself; maybe spend more doing the things you weren’t sure you could afford to do.
  • Free up your most precious resource – your time. Spending money to engage help (e.g. a cleaner or gardener or maybe even a PA) can make life easier for you.
  • Culture memories by spending money taking friends and family on fabulous holidays or experiences.
  • Give money to your family or friends when they need it, rather than when you die. With the added benefit that you get to see them enjoy your gift.

Use your money for ‘good’ to help causes which are close to your heart and can make a difference. Such giving may also provide income and capital gains tax benefits, along with a real feel good factor.

So, what are you waiting for?

We are all creatures of habit. It takes time to develop the confidence to change lifetime habits and feel comfortable to spend or give more.  But gifting does good and it feels good.  The ultimate win win.

In summary, if you are in the fortunate position of having ‘enough’ take action by spending or giving more now or perhaps build spending and giving into your annual expenditure.  After all, inaction may just lead to the resulting loss of 40% of your family wealth when you go….

If you’re not sure where you are in your accumulation of ‘enough’ or want to kick start your gifting plan, please get in touch.  We look forward to hearing from you.

Remember you can’t take it with you.


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