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I think it would be fair to say that most members have wealth and most likely will be effected by IHT when they depart this life - Or they may wish to pass down their wealth as they age
From what I can see this is not easy to do especially if you are a Leveraged Landlord
Will you go into old age as a Landlord or will you try and pass it down?
My own feelings are If you are leveraged, the prudent way is to cover yourself with Life Insurance (written in Trust ) and if you can fund your Pension With the new pension freedoms its a very easy way to pass down your wealth
Can I ask what your plans are about passing down your heard earned wealth?
It's a fact of life we all age and we all die ...
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Yes that is a solution which works if structured correctly. Unfortunately most people have only accumulated the wealth and considered IHT once they are older such that life assurance is expensive, The solution is to buy life assurance to cover your IHT bill when you are 18 but you can’t afford it and don’t know much much to cover - no IFA would recommend that!
Undoubtedly investment assets are not as easy to pass on without tax. However there was solutions to do this during one’s lifetime depending on the circumstances. You tend to find income tax is often at odds with IHT - the taxman wants his slice of the action someho. Pick which it is to be.
and my solution? Good question. Still building the wealth but starting to seed interests to them before I decide if they should get my hard earned wealth and whether they could manage property or not. They are still kids though.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
The other avenue I have looked at is the 10 year rule
where IHT is paid from the income over a period of time
apart from the intrest is there any drawbacks with arranging this
I wonder does the 10 year IHT payment rule apply to apply to shares in a limited property investment company
In my limited knowledge the 10 year IHT charge only applies to certain types of trust. If the FIC shares are held in one of these types of trust then it would be possible.
That’s a very good pointv
i don’t think the 10 year rule will work with shares
o think it’s Landl and Property only
but I am sure some one will know
Just keep going and then they take the IHT hit but they still do well
Life insurance in Trust . Got quite a bit of that ...Looking to up that maybe as its an easy win
Gifts during lifetime and making sure i live 7 years afterwards so dont get taxed
Jonathan Clarke. http://www.buytoletmk.com
I'm very much in favour of a Family Investment Company and splitting the legal and beneficial ownership. I understand the general principle but will need someone qualified to set this up efficiently.
I'm not as concerned about IHT and death, what I have is not too far over the allowance, although an FIC seems to avoid it. I'm more concerned about dying slowly and my assets being stripped to provide care.
Yes family investment companies are a well trodden path. In recent years with international focus on tax havens, these have changed from being owned by offshore family trusts to also include simple family ownership.
Your split of ownership is not necessarily going to work for IHT. However it does stop the council seizing your property for care costs.
please give me a call and let's discuss how we can help be it drafting or just advice.
Wow it’s nice to know councils can not get their hands on company property. I did not think of that topic
I’m not sure that works but with a company you can create fractional interests much easier so that you prevent council action.