Until now, the Government has been merely tinkering with inheritance tax legislation. To achieve its target of boosting IHT revenue from 3bn to 10bn a year will require a massive overhaul that will mark the end of many standard estate planning methods. The implications for individuals with an estate over the 275,000 threshold are significant.With standard tax avoidance options (from potentially exempt transfers to deeds of variation) now on borrowed time, individ-uals need to consider the use of trusts to ringfence their chosen beneficiaries’ inheritance while safeguarding their own lifetime financial security. Despite the widespread perception that trusts are complex and expensive to set up and manage, they are in fact the perfect, flexible solution for estate planning. Simple to arrange and with annual fees of no more than about 500, trusts provide an opportunity to safeguard assets for children and grandchildren while enabling the settlor to retain control. Critically, a trust can be broken at any time, providing the flexibility required for an evolving estate planning strategy. Unfortunately, misinformation and misunderstanding about inheritance tax legislation is widespread, resulting in expensive mistakes that not only add to the Government coffers but also undermine financial security. Good estate planning is not about buying insur-ance products to cover the expected IHT liability. It is about understanding the needs and expectations of individuals and accommodating their wishes and concerns about family members within a flexible, regularly reviewed strategy . Peter LeggHead of inheritance tax planning matters, Vantis
Last week, I looked at the Strover case in the context of a wider review of the perceived complexities of business insurance.
Lifesearch has called on the Association of British Insurers to lead an industry ad campaign to raise consumer awareness of the protection gap and improve perception of the sector. Managing director Tom Baigrie says the industry has to tackle the lack of public demand for protection but says distributors do not have the financial resources […]
Financial services is finally on its way out of the “industrial revolution” it has been struggling through and the future looks bright, accord- ing to Millfield chief executive Paul Tebbutt. Tebbutt says financial services is the “powerhouse” of the country, being the biggest single contributing industry towards the UK’s GDP, and he sees increasing flexibility […]
Syndaxi Financial Plan- ning director Robert Reid and Nicholls Stevens Financial Services princi- pal Carole Nicholls have been appointed vice-pres- idents of the Personal Finance Society.
By James Dowey, Chief Economist and CIO Turnaround stories are an investor’s best friend. If successful, they prompt a widespread and possibly radical re-evaluation of the fair value of the associated assets. If one is brave enough to re-evaluate early on in the process then the returns can be very large. For over two decades […]
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
National advice firm Sandringham has made two new board appointments as it seals the hire of former James Hay director John Watson. Watson served as finance director for the platform and its parent IFG Group’s advice business Saunderson House until 2015, before taking over as chief operating officer for financial technology company Equiniti. Sandringham, a […]
Positive sales data has excited the industry but the challenge now is to carry the momentum into 2018
It is that time again where clairvoyants in the investment industry fall over themselves to file their predictions for markets in the year ahead. Analysts will pontificate on everything from the global economy and political stability to interest rates. They will aim to convince us equity valuations are stretched and the only way to avoid […]