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April 2025 | Phonebox Magazine 9The Changing Landscape of Wealth TransferOne of the biggest shifts coming in 2027 relates to how pensions are treated under inheritance tax (IHT) rules. Currently, pensions can be a highly tax-e%u0090 cient way to pass on wealth, often free from IHT if structured correctly. However, the new rules could see pension pots forming part of the taxable estate in certain circumstances, meaning families may need to rethink their strategies.This is where financial advice becomes invaluable. Understanding how these changes impact your long-term plans can make the difference between keeping wealth in the family or seeing a large portion lost to tax. By working with a fi nancial adviser, you can put measures in place now to protect your hardearned money and ensure your family benefi ts in the most tax-e%u0090 cient way possible.Beyond pensions, it%u2019s also worth considering how other assets, such as property and investments, are structured within your estate. Many people assume that passing on assets is straightforward, but without a well-thought-out plan, your heirs may face unnecessary tax bills and administrative burdens. Taking a proactive approach now can prevent future headaches and maximise the legacy you leave behind.Practical Steps for E%u0008 ective Estate PlanningSo, what can you do to make sure your wealth stays in the family?Make use of gifting allowances %u2013 You can give away a certain amount of money each year without it being subject to IHT. Regular gifts from surplus income can also be a taxe%u0090 cient way to pass on wealth. Additionally, larger gifts can be made but may be subject to the seven-year rule, meaning they fall outside of your estate if you survive for at least seven years after making them.Trusts can be powerful tools %u2013 Setting up a trust can help control how and when your money is passed down, while potentially reducing tax liabilities. Trusts can be especially useful if you want to provide for multiple generations or protect assets from potential future risks, such as divorce or fi nancial di%u0090 culties within the family.Review your Will and estate plan %u2013 Many people assume a Will is a one-time task, but it should be reviewed regularly, especially when tax rules change. A wellstructured will ensures that your wealth is distributed according to your wishes and in the most efficient way possible. The writingof a Will involves the referral to a service that is separate and distinct from those o%u008e ered by St. James%u2019s Place. Consider using your pension wisely %u2013 With the 2027 changes, the way you draw from and leave your pension will be even more crucial. Taking advice now can help structure withdrawals in a tax-efficient way. It may also be beneficial to consider alternative ways to provide for your family, such as life insurance policies that can be written in trust to avoid inheritance tax.The Importance of Regular ReviewsFinancial plans are not a %u2018set and forget%u2019 exercise. Tax laws, investment markets, and personal circumstances all change, meaning a strategy that worked fi ve years ago might not be the best approach today. Regular reviews with a fi nancial adviser ensure that your plan remains aligned with your goals and the latest tax rules. By reassessing your fi nancial position regularly, you can adapt to changes, take advantage of new tax e%u0090 ciencies, and ensure your wealth remains protected for future generations.Why Professional Advice Matters More Than EverEstate planning and wealth preservation can be complex, and mistakes can be costly. Having a professional on your side helps navigate changing legislation and ensures you%u2019re making the most of available opportunities. More importantly, it brings peace of mind, knowing your wealth is protected for future generations.Working with an experienced fi nancial adviser means you can create a bespoke plan that refl ects your family%u2019s needs, priorities, and aspirations. Whether it%u2019s setting up trusts, restructuring investments, or simply ensuring your will is up to date, professional advice can provide clarity and direction.If you%u2019d like to discuss how to make the most of your fi nancial legacy, feel free to get in touch with us and arrange a no obligation meeting with either Stefanie or Laura. Planning now can help secure your family%u2019s future for years to come.The value of an investment with St. James%u2019s Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount you invested. The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.Wills and Trusts are not regulated by the Financial Conduct Authority.Advertising FeaturePlanning for the Future: Protecting Wealth for the Next GenerationMoney isn%u2019t just about the here and now%u2014it%u2019s about the future, too. Many families work hard to build wealth, but without careful planning, a signifi cant portion can be lost to taxes, poor investment choices, or simply a lack of strategy. Intergenerational fi nancial planning and estate planning have never been more important, especially with upcoming changes to pension legislation and inheritance tax rules in April 2027.www.stefaniepricewealth.co.uk%u2022 01234 241 441info.spwealth@sjpp.co.ukSJP APPROVED 10/03/2025 www.stefaniepricewealth.co.ukStefanie Price Wealth Planning is an Appointed Representative of and represents only St. James%u2019s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group%u2019s wealth management products and services, more details of which are set out on the Group%u2019s website www.sjp.co.uk/products. fi e %u2018St. James%u2019s Place Partnership%u2019 and the titles %u2018Partner%u2019 and %u2018Partner Practice%u2019 are marketing terms used to describe St. James%u2019s Place representatives.