Tel: 01189469717, Email: ion@assets.ltd.uk, Chiltern Chambers, St Peters Avenue, Caversham, Reading, Berkshire, RG4 7DH
Assets Financial Services
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    • Key Person, Co-shareholder and Relevant Life Cover
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    • Equity Release
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  • Home
    • About Us
    • What We Do And How We Work
    • Our Service Principles
    • Contact Us
  • Saving for Retirement
    • Personal Pensions
    • Self Invested Pensions - SIPP and SSAS
    • SIPP Commercial Property Purchase
  • Retirement Choices
    • Annuities
    • Flexible Retirement - Drawdown and Phased Retirement
    • Pension Lifetime Allowance
  • Investment
    • Investment Process
    • Collective Investments
    • VCT and EIS
  • Estate Planning
    • Wills & Power Of Attorney
    • Making The Most Of Allowances
    • Trust Based Schemes
    • Other Strategies - BPR/AIM and Life Assurance
  • Corporate
    • Key Person, Co-shareholder and Relevant Life Cover
    • Pension Arrangements For Businesses
    • Other Employee Benefits
  • Other Services
    • Equity Release
    • Insurance Services

Trust Based Schemes

Many people will die with an estate that exceeds the nil rate allowance plus residence nil rate band, and the excess will be taxed at 40%. Thankfully, it is possible to gift assets away beforehand and if we live long enough afterwards the assets may escape Inheritance Tax entirely.  It is therefore vital for wealthier people to plan during life and not rely wholly on the Will.

You may make unlimited gifts to family and these Potentially Exempt Transfers (PETS) will usually escape IHT provided that you then live for seven years. However, A PET is not effective if the person making the gift continues to benefit from the gift thus precluding the gifting of money and continuing to receive income, or donating the home and continuing to live there rent free. In reality, most people will prefer to preserve some future access to gifted capital.

It may not be attractive to give children large amounts of capital outright when it could be lost if the child faces divorce or financial difficulties. Many clients would prefer to protect a gift from such threats and prefer to retain some control of the assets during their lifetime.

Money can be passed into Trusts for the eventual use of the family and the gift may escape Inheritance Tax after seven years (a Discounted Gift Trust may achieve an immediate reduction). However, capital may still be enjoyed by the donor thus reducing Inheritance Tax whilst preserving financial security. Control may be retained as to how the money is invested and who benefits; you may also appoint trustees to ensure that your wishes are honoured after death. The process can be repeated thus allowing large amounts to be removed during your lifetime but it is important to start planning at an early stage.

There is a wide variety of schemes available that will suit investors according to their objectives, needs for future capital etc. We can provide guidance on an appropriate strategy to suit your circumstances and objectives. You may invest Trust assets in any conventional investment and we can assist you in selecting and managing the portfolio. Some of the Trust choices include: -

· Discounted and Non-Discounted Gift Trusts

· Carve Out/Reversion Trusts

· Gift and Loan Trusts

The trust may be invested in a wide range of collective investments holding your choice of shares, Gilts, bonds, property, cash etc.

We can guide you through the whole process and have many years’ experience of providing independent financial advice regarding Inheritance Tax for people in Brighton, Hove, Sussex, London and the South East. If you would like a 'no obligation' chat about the choices available to you please contact us.

Assets Financial Services is a trading style of Sage Roxborough Ltd,  which is authorised and regulated by the Financial Conduct Authority. Sage Roxborough Limited is entered on the FCA register (https://register.fca.org.uk/) under reference 718005. The information and content of this website is intended for UK consumers only and is subject to the UK regulatory regime. The FCA does not regulate some forms of mortgages and tax planning advice. Registered office 168 Church Road, Hove, BN3 2DL. Registered in England No. 05478319
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