Inheritance Tax Strategies
Provided action is taken during lifetime it is possible to preserve your wealth for the next generation. It is not always necessary to give assets away to save Inheritance Tax and we can advise on a range of solutions depending on your overall aims, including the following:
Overseas Settlement Trusts
This solution enables clients to obtain an immediate reduction in their chargeable estate for Inheritance Tax purposes. It can be used whatever type of assets are comprised within the estate. It is suitable for individuals with estates chargeable to Inheritance Tax in excess of £1m (after taking into account nil-rate band(s)) who may not survive the seven year period required to escape Inheritance Tax on conventional gifts.
Family Debt Planning
Family Debt Planning enables a married couple to substantially reduce their estates for Inheritance Tax purposes whilst retaining ownership of all of their assets. It is suitable for couples where one spouse has investment assets (which may include cash) of at least £400,000, and a life expectancy of seven years or more.
This solution enables non-domiciled individuals who have been in the UK for less than 17 of the last 20 years to permanently shelter assets from Inheritance Tax. Whilst the assets are sheltered from inheritance tax, the individual is still able to receive income generated by those assets and access capital as required. It is suitable for individuals domiciled outside of the UK who have been UK resident for less than 17 of the last 20 years and who have world-wide assets in excess of £500,000.
Settlor Trust Planning
Settlor Trust Planning enables single individuals, couples and civil partners to reduce their exposure to Inheritance Tax whilst retaining a right to income from their assets. It is suitable for individuals with estates of £500,000 or more including cash or investment assets worth at least £200,000, who have a life expectancy of seven years or more.
Bespoke Inheritance Tax Planning
Whilst the solutions outlined above will be suitable for many of our clients, we recognise that each client has differing circumstances and requirements. Our team has many years’ experience advising on all aspects of inheritance tax, allowing us to offer a bespoke inheritance tax planning and advisory service.