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Recent case studies

13-01-23

***** and her husband are looking for Inheritance Tax Planning advice. They have an estate with a value of £2.5M. They have 3 grown up children. She is 76 and her husband is 81. They have not put any plans in place yet.

08-Nov-2023

Couple age 58 & 60, they would like IHT Planning advice. The value of their estate is over £1.8 million including their property valued at £1.3 million. They would like to put things in place now to reduce any future IHT liability for their 2 children. Happy to receive remote advice. Please leave a message if she doesn't answer, she is very busy all day with her work.

07-Nov-2023

He and his wife have power of Attorney for his Father. His Father's estate is worth over 1 million pounds, mainly made up of property and land, and they are looking for advice on whether anything can be done to reduce any potential inheritance tax liability. The best time to call is after 2pm.

06-Nov-2023

Age 62 and looking for some IHT planning advice. Her estate is worth around £900,000 including 1.5 inherited properties worth £420,000. She is getting married next year and has 4 grown up children and she wants to ensure she doesn't leave them with a huge tax bill. Happy to receive remote advice. Best time to call is after 3pm.

02-Nov-2023

Age 70 looking for IHT advice. Her husband has recently passed away so she wants to put plans in place for her 2 children so they don't get a huge inheritance tax bill. Her estate is worth around £1.5 million, it consists of 2 properties including 1 rental, she is open to all ideas to get the tax bill as low as possible. She also inherited her husbands SIPP and has her own, she would like both looked at. She would ideally like an independent advisor up to an hour and a half away as she would like to meet face to face.

19-Sep-2023

Approach:

 

IHT Allowances and Exemptions:

The first step in addressing the Smiths' IHT challenge is to utilise available allowances and exemptions. They can benefit from the following:

 

Nil-rate band: Each individual is entitled to a nil-rate band of £325,000, which means the first £325,000 of their estate is not subject to IHT.

Residence Nil-Rate Band (RNRB): Introduced in 2017, the RNRB provides an additional allowance for the family home, currently at £175,000 per person

Gifts and exemptions: The Smiths can consider making lifetime gifts, utilising annual gift exemptions, small gifts exemptions, and other tax-efficient gifting strategies.

 

Areas considered

 

Trusts: Setting up trusts can help protect assets from IHT while allowing the Smiths to retain some control over them. Discretionary trusts and family trusts are common options.

Gifting strategies: Structured gifting of assets over time can gradually reduce the taxable estate.

Life insurance: Taking out life insurance policies can provide funds to cover IHT liabilities, ensuring the heirs receive the full estate.

Investment Diversification:

Diversifying investments can help reduce the impact of IHT. The Smiths can consider investing in IHT-exempt assets such as AIM-listed shares and Enterprise Investment Schemes (EIS). These investments offer various tax benefits and can be integrated into their overall investment strategy.

 

Outcome:

 

By working closely with us and implementing the strategies mentioned above, the Smith family significantly reduced their potential IHT liability. Their estate plan allows them to make the most of available allowances and exemptions while ensuring their children receive a substantial inheritance.

 

Conclusion:

 

Inheritance Tax planning is a critical aspect of wealth management for high-net-worth individuals and families. The Smith family's case highlights the importance of proactive estate planning to mitigate IHT liabilities and ensure that wealth is preserved for future generations. It also underscores the need for ongoing review and adaptation of strategies as tax laws and personal circumstances evolve.

17-Jul-2023

Aged 70 with 2 children and all 3 are UK residents. He is concerned about any possible future IHT issues for his children and what provisions he can make to reduce any possible liability. He owns 3 flats, mortgage free with a value of between £800,000 and £900,000 as well as property in India and Oman. He also has investments on an Isle of Man Plan platform of £450,000. He is happy to receive advice on a remote basis.

17-Jul-2023

Age 82, he is looking for IHT planning advice as he is preparing his will. Estate value is over £1 million including his property, various shares and investments. He is also partner in the family business, which his 2 sons run. He is married with 4 children. He would like an advisor within 1.5 hours travel time.

17-Jul-2023

Age 43, he runs a property company and is a property developer and landlord, he owns 10 rental properties and is also building a property in St Lucia which will be worth £400-£500,000 when completed. His residential property is valued at £400,000. He is married with 7 children and wants to ensure that his assets are protected and passed on to his children in the future. He wants to discuss life insurance and possibly trust funds for his children. He has a BT pension, contributed for 10 years and savings in the bank £120,000.

14-Jul-2023

Age 90, he is widowed with 3 children. He needs IHT planning advice. His estate is worth £1,380,000 including his own bungalow £750,000 and a rental flat £300,000, he also has various PEPs and ISAs £330,000. He has set-up a trust for his 3 children for the bungalow but there have been complications, the trust is not registered and he is thinking he may reverse the whole process and start again. He would like an advisor within 1.5 hours travel time.

31-May-2023

He and wife both 78 are looking for inheritance tax planning advice. Estate value is £1.6-£1.7 million including 2 properties £1.2 million and £450,000 in investments, mainly stocks & shares ISAs. They have 2 children. Officially retired but does voluntary work for CAB.

31-May-2023

Age 67 & wife is 64. They are looking for IHT planning advice. Their estate value is £2.5 - £3 million and the equity is mainly in properties, they have 13 rental properties and their residential property. They have 3 children and he wants to discuss setting up a trust fund for them. Income from the rental properties is currently £100,000 pa. He would like a face to face meeting following the initial telephone consultation.

31-May-2023

Age 60, she is looking for IHT planning advice. Her estate is worth £1.6 million including her residential property and a property in France. She is thinking of retiring soon, possibly selling her UK property and moving to France. She wants advice on how to arrange things in the most efficient way so that her 3 children avoid unnecessary IHT. Please call after 2pm.

31-May-2023

Potentially good opportunity. Retired lady who owns a number of rental properties in her name as well as joint with her husband is looking for Inheritance Tax Planning advice for which she knows she needs. Extremely reluctant to give out information over the phone on number and values of properties due to being scammed previously on pension transfer. Has 4 children. Can be called anytime today or on Monday

16-Apr-2023

Age 67 and retired, she needs advice on inheritance tax planning. Her total estate value is approximately £3 million, including 3 properties and cash. She has 1 son age 33 and she has made some gifts to him already and wants to review her current situation & look at what further options are available to her with regards to IHT issues.

15-Apr-2023

*** is looking to set up a family investment company or trust with her dad, they have £900,000 in assets and are open to ideas of the best ways to alleviate the Inheritance tax bill. She is 29 and her dad is 70.

13-Jan-2023

**** is looking to discuss Inheritance Tax Planning with an advisor. His estate is worth £4.7m including investments, he is 81 years old and his wife is 76 and they have 2 children.

 

11-Jan-2023

***** and his wife are in their early 70's and looking for Inheritance Tax Planning advice. They have an estate with a value of over £1 million, including their own house and 2 rental properties. They have 2 children over 18. They have not put any plans in place yet.

11-Jan-2023

Aged 86 and looking for advice on IHT. He's married with two sons. Owns a property valued at just over £2,000,000 plus savings of £100,000 plus a pension which is in draw down also valued at £100,000 and his wife has a pension in draw down valued at £200,000 Total value of estate in the region of £2.4 million They have a life insurance policy in force for £250,000 which is written in trust but wants to check that this is all set up correctly. Would like to know the best way forward to decrease any liability their children may face on their death.

 

19-Dec-2022

******'s great aunt is 89 and in care. They need to put plans in place for her estate. The estate is worth £1,000,000. Her husband died in 2018 and they have no children, the inheritance will be going to him and his mother. She lives off of her pension income and pays for her care fees from this.

15-Dec-2022

***** is looking specifically for an independent advisor, she wants to start putting plans in place for Inheritance tax. She is 61 years old and has an estate worth £1,200,000. She has one adult daughter. She would also like to look at her options for retirement planning, she only has a few small pensions but she does own 2 homes and may want to consider selling her London home worth £700,000 in the future to set them up for retirement.  They have a house in Northampton that she will move to.

 

15-Dec-2022

***** has a Loan trust that he opened in 2006 for his daughter that is worth £160,000, he needs to register the trust and he believes there is 2 of them to register. He is 84 years old and has an estate worth £800,000, he is not married.

14-Dec-2022

****** is looking to get the inheritance tax sorted on her dads estate. He is 53 and has brain damage so she and a lawyer have POA. Her father has 2 properties with a total value of £600,000. He only has one child and the estate is his alone. He also has a pension of £41,000 that may need looking at.

28-Nov-2022

We would like to transfer deceased father from 2004 tax threshold to mother to combine inheritance tax threshold for son and daughter. Total value of estate £600,000.

28-Nov-2022

**** is looking to speak to someone regarding Inheritance Tax Planning, his total assets are worth between £1.5 and £2 million pounds. He and his wife are 75 and 74 and they have 3 grown up children. They have not put any plans in place yet.

20-Aug-2022
Normally, the answer is yes. A life insurance policy would typically pay out a lump sum after the policyholder’s death that can protect from asset liquification in the case of outstanding Inheritance Tax. For example, a sentimental childhood home or family car from an estate wouldn’t need to be sold to foot the tax bill if there is cash from a life insurance policy to take its place. Life insurance can be considered part of your estate and therefore subject to tax, unless your policy is written ‘in trust’, so be sure to clarify those details with a professional. Using a trust also means that there's no need to wait for probate as the policy proceeds do not form part of the estate, which can save the personal representatives a lot of time and stress!
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