For Professional Clients Only
For Attorneys Inheritance Tax (IHT) Planning can be difficult, as traditional IHT planning will generally require the agreement of the Court of Protection. It may be that the Court does not agree that making lifetime gifts or placing assets into a trust is an appropriate strategy for the client. Business Relief (BR) investments offer a plan for IHT without depriving the donee or the need for Court of Protection approval.
- James and his sister have lasting power of attorney over their mother Joan’s assets. Joan is now 86 and has an estate worth over £400,000 subject to IHT, after using her nil rate bands.
- The Court of Protection is unlikely to allow an outright gift or gift into Trust, as this will make the money inaccessible and disadvantage Joan
- It is unlikely Joan would pass medical underwriting to insure against the Inheritance Tax due
- James is concerned to do the right thing for his mother but knows she was keen to pass on as much wealth to him and his sister as possible
Solution: Business Relief
- By investing in BR Assets Joan retains ownership of the assets
- Should her condition improve and the power of attorney revoked she could enjoy the benefit of this money
- Alternatively, should Joan need to access the money for care in her old age, this can be arranged with the BR provider
- Joan has a choice of Growth assets or more conservative asset backed, capital preservation Business Relief assets
Business Relief and Power Of Attorney
Capital is at risk and the investor may not get back the amount invested
For more information about how our tax products can help with this scenario, please contact our tax team using the details below.
Issued by LGBR Capital Limited, Candlewick House, 120 Cannon Street, London EC4N 6AS. LGBR Capital Limited is an Appointed Representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority number 606792. This document should not be regarded as constituting advice in respect of legal, taxation, investment or other matters. This document is intended to be communicated solely to persons that fall within the FCA classification of ‘Professional Client’. LGBR Capital Limited operates as distributor of the investment products and strategies of other selected providers. LGBR Capital does not manufacture investment products itself. Past performance is not a guide to future performance; the value of an investment and income from it can go down as well as up. Contact the sender of this document if you would like further information about any of the funds, including charges, expenses and risk considerations. Prospective investors are advised to consult their own professional advisers before contemplating any investment. No representation or warranty expressed or implied is made or given by any person as to the accuracy or completeness of the information contained in this email and no responsibility or liability is accepted for any such information. This material may not be distributed, published or reproduced in whole or in part.