Inheritance Tax
At EDF Tax we recognise that people want and indeed do have a choice when it comes to estate planning. Provided action is taken during lifetime it is possible to preserve your wealth. 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:
- Excluded Property 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.
- Non-Domiciliary Planning - 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.
- Tax Effective Will Planning - This planning allows married couples or civil partners holding business or agricultural assets to reduce their exposure to Inheritance Tax whilst retaining all of their assets during lifetime. The Wills can achieve an Inheritance Tax saving equal to 40% of the value of the business/agricultural assets held by the spouse who is the first to die. The planning is suitable for married couples where at least one spouse has business or agricultural assets in excess of £150,000.
- 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 inheritance tax specialist has over fifteen years’ experience advising on all aspects of inheritance tax, allowing us to offer a bespoke inheritance tax planning and advisory service.
Who to contact?
For more information contact Alan Garratt on 07572 145783 or email agarratt@edftax.co.uk.