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This arrangement allows a UK resident and domiciled individual (“the Client”) to immediately reduce the value of their estate for inheritance (“IHT”) purposes in such a way that does not involve the transfer of any assets until after the Client’s death.

Key Features

  • 40% IHT tax charge eradicated;
  • Immediate IHT reduction – suitable for death bed planning;
  • No physical movement of assets until after the individual’s death;
  • Control and access over the assets;
  • No legal charge needed on assets;
  • HMRC compliant.

Key Benefits

  • Tax savings can be utilised immediately;
  • Don’t have to give up control over ones estate or gift assets;
  • Protects the whole estate even main residence and allows you to live in the property with no rent;
  • Sophisticated succession planning – Protection against future generations divorce and bankruptcy; and
  • All of the estate goes in the direction of your choosing

Frequently Asked Questions
(FAQ)

1

How Long Does The Arrangement Take To Implement?

Once we are in receipt of the information and documentation requested in the engagement letters, the strategy can be implemented in less than a week provided that the Client is available to sign the required documentation.

2

Do I have to give away my estate.

No you have full control over all your assets until the day of Death.

3

Do I have to pay rent if I stay in my main residence.

No you do not have to pay rent to the beneficiaries if you stay in your main.

4

DO I still need a Will

We recommend all clients have an up to date current Will and LPA’s. We will be happy to draft these for you

5

Does The Arrangement Work Where The Client Is Married Or Unmarried?

Yes, either is fine

6

Does There Need To Be A Transfer Of Assets During The Client’s Life?

No, the Client will not normally need to make any payments during thier life (unless they wants to).

7

Is The Arrangement Effective Where The Client Is Non-UK Resident?

Liability to IHT is determined by domicile and in the case of non-UK domiciled individuals, situs of assets. Residence is not usually relevant. If an individual is considering implementing the arrangement and is not sure about their domicile status they should seek advice.

8

Is The Arrangement Effective Where The Client Is Non-UK Domiciled?

Yes but additional drafting would be needed

9

Is The Arrangement Effective Where The Client Owns Property Which Qualifies For BPR Or APR?

Yes but additional drafting would be needed

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