JULY 2021INHERITANCE
TAX PLANNING
!e future can’t be predicted,
but it can be protected
G U I D E T O
02 | GUIDE TO INHERITANCE TAX PLANNINGW E L C O M E
!e future can’t be predicted, but it can be protected
W elcome to this Guide to Inheritance Tax Planning. You no doubt
want your loved ones to inherit as much of your wealth as possible
when you die. Estate planning is about more than just tax. It is
about making sure the people le! behind are "nancially supported, that your
assets are protected and that the tax your estate pays is fair
#e coronavirus (COVID-19) pandemic has served as a reminder of the
importance of planning for the future and having our a$airs in order. When
you’ve worked hard and invested carefully to build your wealth, you want to look
a!er it. #at’s why it’s important to plan for your wealth preservation and the
eventual transfer of that wealth.
Have you considered this question: ‘What will happen to my estate once I’ve
gone?’ Wealth preservation and wealth transfer are becoming an increasingly
important issue for many families today. Individuals with assets of any size should
seek professional "nancial advice to consider what action may need to be taken
before it’s too late.
#e reality is, most of us should prepare for the eventual transfer of our assets,
regardless of any tax or legal consequences. It is natural that many of us want to
leave our wealth to those who matter the most. Having a well-managed estate can
save time and legal costs in the long term, help avoid a large Inheritance Tax bill,
and cushion the blow for those you leave behind.
It’s important to start with a clear picture of your goals. You may want your estate
to provide ongoing income and security for dependents, to make bequests or to set
up Trusts. Everyone’s circumstances are di$erent – planning can look at tax-e%ciency
and maintaining access to income and capital.
It can also include protection from irresponsible bene"ciaries, or to provide for
vulnerable or minor bene"ciaries. We can also help you assess and minimise any
risk to your inherited assets, for example, from divorce or bankruptcy.
Wealth preservation and the transfer of your wealth is not just for the super
rich. It is essential for anyone who wants to ensure that their loved ones bene"t
from their inheritance and are not burdened by it.
Time to preserve your wealth
and transfer it e!ectively?
#e accumulation of your assets
and wealth will have come from
hard work and determination. So
protecting this is essential. Preserving
your wealth and transferring it
e$ectively is an important part of
wealth management, no matter
how much wealth you have built
up. To "nd out more or arrange an
appointment, please contact us – we
look forward to hearing from you.
G U I D E T O
I N H E R I T A N C E
T A X P L A N N I N G
TRUSTS ARE A HIGHLY COMPLEX AREA
OF FINANCIAL PLANNING.
INFORMATION PROVIDED AND
ANY OPINIONS EXPRESSED ARE FOR
GENERAL GUIDANCE ONLY AND NOT
PERSONAL TO YOUR CIRCUMSTANCES,
NOR ARE INTENDED TO PROVIDE
SPECIFIC ADVICE.
PROFESSIONAL FINANCIAL ADVICE
SHOULD BE OBTAINED BEFORE TAKING
ANY ACTION.
03 | GUIDE TO INHERITANCE TAX PLANNING02 WELCOME
The future can’t be predicted, but it
can be protected
04 KEEPING WEALTH
IN THE FAMILY
Inheritance Tax receipts reach
£5.32 billion in 2020/21
06 MAKING SUITABLE PLANS
Organise how much you could
leave for the people you care about
08 INCREASED NET
WORTH AND RISING
MORTALITY RATES
The earlier you put plans in place,
the more options you may have
10 MORE FAMILIES SUBJECT
TO INHERITANCE TAX
Balancing your plan with other
financial priorities is key
11 MAKING A WILL
Three in five UK adults have not
made provision
12 INHERITANCE TAX
RESIDENCE NIL-RATE BAND
Relieving the burden by making it
easier for individuals to pass on the
family home
14 LIFETIME TRANSFERS
Giving away money from your
estate to reduce your Inheritance
Tax bill
16 LEAVING YOUR
LEGACY BEHIND
Considerations when making a Will
18 TRUSTS
‘Ring-fencing’ assets to protect
family wealth for future
generations
19 BARE TRUSTS
Held for the benefit of a
specified beneficiary
20 DISCRETIONARY TRUSTS
Wide class of potential
beneficiaries
22 FLEXIBLE TRUSTS WITH
DEFAULT BENEFICIARIES
Discretion over which of the
default and potential beneficiaries
actually benefit
23 SPLIT TRUSTS
Family protection policies
24 LASTING POWER
OF ATTORNEY
Taking control of decisions even
in the event you can’t make them
yourself
26 PRESERVING WEALTH
FOR FUTURE GENERATIONS
Factors likely to have a lasting
and positive impact on wealth
preservation
27 IN CONCLUSION
Estate planning possibilities
CONTENTS
Inheritance Tax is a tax on an estate (the property,
money and possessions) of someone who's died.
Inheritance Tax receipts in the United Kingdom
amounted to approximately £5.32 billion in 2020/21,
compared with £5.36 billion pounds in the previous
"nancial year, which was a peak for this provided time
period[1].
Raising the money to pay an Inheritance Tax bill may
mean cashing in any savings accounts held by the deceased
and potentially selling some of the assets in the estate.
There is no easy way to say it – anticipating one’s
death is an uncomfortable topic. Yet it is often worth
pushing past the initial discomfort to pursue the
potential rewards of effective wealth transfer planning.
There are three places your assets can go at your
death: to your family and friends, to charity or to the
government in the form of taxes.
Almost half of all Baby Boomers say they have enough
personal wealth that they can a$ord to gi! some of it away
during their lifetime, new research shows[2]. #e "gures,
collected by YouGov, show that 48% of Baby Boomers say
they could a$ord to give money to family members before
they die. Less than a third (29%) ruled it out, and 26% say
they are unsure.
LARGER ONE-OFF WEALTH TRANSFERS
Of those who say they can a$ord to make lifetime gi!s,
40% say they would favour multiple small gi!s and a third
(33%) would prefer larger one-o$ wealth transfers. A
further 30% are unsure which would better suit their needs.
Despite the large number of people who estimate they
can a$ord to pass some of their savings and assets to family
members, government statistics suggest only between 31%
to 39% of people aged 50-69 have ever given a "nancial gi!.
And just a small minority appear to have a plan for regular
annual gi!ing, with just 15% of 50-59-year-olds having
gi!ed in the last two years.
INTERGENERATIONAL FINANCIAL ADVICE
#e statistics reveal the importance of wealth transfer
planning and lifetime gi!ing advice. It is estimated that
around £5.5 trillion of intergenerational wealth transfers
will occur over the next 30 years[3]. An e$ective plan can
lessen the likelihood of family con&ict, reduce estate costs,
reduce taxes and preserve wealth.
Obtaining professional intergenerational "nancial advice
will increasingly become a key part of "nancial planning
for the Baby Boomer generation. #is generation has
accrued signi"cant personal wealth, having bene"ted from
K E E P I N G W E A L T H
I N T H E F A M I L Y
Inheritance Tax receipts reach £5.32 billion in 2020/21
04 | GUIDE TO INHERITANCE TAX PLANNING
05 | GUIDE TO INHERITANCE TAX PLANNINGrising house prices, stock market growth and the higher
prevalence of generous pension schemes, and they want to
give younger generations a "nancial boost.
LIFELINE FOR SOME YOUNGER PEOPLE
In contrast, younger generations o!en "nd themselves
facing high house prices and the need to make signi"cant
personal contributions to their De"ned Contribution
pensions in order to secure a decent retirement fund.
Gi!ing between the generations will increasingly become
a lifeline for some younger people as they struggle to get
on the housing ladder, pay for school fees and deal with the
ever-increasing expenses of living.
CAREFUL BALANCING ACT TO FIGURE OUT
Passing on wealth to the next generation is one of the most
important yet challenging aspects of "nancial planning. It’s
vital that helping the younger generations doesn’t come at
the expense of your own retirement funds and so there is
a careful balancing act to "gure out if you can a$ord it. If
you can a$ord to gi!, it’s vitally important to consider the
various Inheritance Tax and gi!ing rules.
Despite this, there is still a clear ‘gi!ing gap’ between the
number of people who can a$ord to gi! and those who actually
have a lifetime gi!ing plan in place. Gi!ing is a great way to help
you make the most of your "nancial assets and enjoy seeing your
life savings helping your children and grandchildren.
WEALTH TRANSFER PLANNING PROCESS
Establishing who gets what, how they get it and when
they get it, are, as a general rule, personal matters. But
these decisions can have signi"cant "nancial implications.
Life events, as well as market and regulatory factors, can
impact the wealth transfer planning process. #erefore, it is
important for your wealth transfer plan to remain &exible
and be revisited and adjusted periodically.O
Source data:
[1] https://www.statista.com/statistics/284325/united-
kingdom-hmrc-tax-receipts-inheritance-tax/
[2] Research commissioned by Quilter and undertaken by
YouGov Plc, an independent research agency. All "gures,
unless otherwise stated, are from YouGov Plc. !e total
sample size is 1,544 UK adults, comprised of 529 Baby
Boomers, 501 Generation Xers and 514 Millennials.
Fieldwork was undertaken between 07/07/2020 – 08/07/2020.
!e survey was carried out online.
[3] ‘Passing on the pounds – !e rise of the UK’s inheritance
economy'. Published May 2019. Author: Kings Court Trust
“
“
OF THOSE WHO SAY THEY CAN
AFFORD TO MAKE LIFETIME GIFTS,
40% SAY THEY WOULD FAVOUR
MULTIPLE SMALL GIFTS AND A THIRD
(33%) WOULD PREFER LARGER
ONE-OFF WEALTH TRANSFERS.
Inheritance Tax can cost families thousands of pounds
but there are various ways to legally avoid paying this
tax. Without making suitable plans, your loved ones
could face a tax bill of 40% on the value of everything you
own above a certain threshold.
Whether you have earned your wealth, inherited it or
made shrewd investments, you will want to ensure that as
little of it as possible ends up in the hands of the taxman
and that it can be enjoyed by you, your family and your
intended bene"ciaries.
If you pass away and don't have provision in place to
preserve and protect your assets, then your family may
end up spending a substantial amount of time and money
battling over your wealth.
#is process of dividing up your assets could become
complicated. Estate planning gives you control over
what happens to your assets when you pass away. It is a
fundamental part of "nancial planning, no matter how much
wealth you have accumulated.
Not only does an estate plan help to ensure that those
who are important to you will be taken care of when you’re
no longer around, but it can also help ensure that assets are
transferred in an orderly manner, and that Inheritance Tax
liabilities are minimised.
#e process involves developing a clear plan that details
how you would like all of your wealth and property
to be distributed a!er your death. It involves putting
documentation in place to ensure that your assets are
transferred in line with your wishes.
Your estate consists of everything you own. #is
includes savings, investments, pensions, property, life
insurance (not written in an appropriate trust) and
personal possessions. Debts and liabilities are subtracted
from the total value of all assets.
WHAT TO CONSIDER WHEN DEVELOPING AN
EFFECTIVE PLAN FOR THE FUTURE
WRITE A WILL
One of the most important components of an estate plan is
a Will. First and foremost, a Will puts you in control. You
choose who will bene"t from your estate and what they are
entitled to. You also decide who will administer your a$airs
a!er your death.
If you don’t make a Will, the intestacy rules will decide
who bene"ts from your estate – and that can produce
undesirable results. #e law also sets a hierarchy of who is
able to handle your "nancial a$airs a!er death, and that
can lead to problems if the person is not suitable because of
age, health, geographical location, or for any other reason.
MAKE A LASTING POWER OF ATTORNEY
A Lasting Power of Attorney (LPA) can be made for Property
and Financial A$airs, as well as Health and Welfare. #ese
documents can be put in place at any time, and it is important
to consider setting them up, no matter what age you are.
An LPA sets out your wishes as to who should assist you
in relation to your property and "nancial a$airs and your
health and welfare. You can control who deals with these
and set out any limitations and guidance.
PLAN FOR INHERITANCE TAX
Once the Will and the LPA are sorted, the next step is to think
about Inheritance Tax planning. Whenever someone dies, the
value of their estate may become liable for Inheritance Tax. If
you are domiciled in the UK, your estate includes everything
you own, including your home and certain trusts in which you
may have an interest.
Inheritance Tax is potentially charged at a rate of 40% on
the value of everything you own above the Nil-Rate Band
(NRB) threshold. #e Nil-Rate Band is the value of your
estate that is not chargeable to UK Inheritance Tax.
GIFT ASSETS WHILE YOU’RE ALIVE
#e amount is set by the government and is currently
£325,000, which is frozen until 2026. In addition, since 6 April
2017, if you leave your home to direct lineal descendants, the
value of your estate before tax is paid will increase with the
addition of the Residence Nil-Rate Band (RNRB). For the
2021/22 tax year, the Residence Nil-Rate Band is £175,000.
One thing that’s important to remember when developing
an estate plan is that the process isn’t just about passing
on your assets when you die. It’s also about analysing your
"nances now and potentially making the most of your
assets while you are still alive. By gi!ing assets to younger
generations while you’re still around, you could enjoy seeing
the assets put to good use, while simultaneously reducing your
Inheritance Tax bill.
06 | GUIDE TO INHERITANCE TAX PLANNINGM A K I N G
S U I T A B L E P L A N S
Organise how much you could leave for the people you care about
07 | GUIDE TO INHERITANCE TAX PLANNINGMAKE USE OF GIFT ALLOWANCES
A gi! from one individual to another constitutes a Potentially
Exempt Transfer (PET) for Inheritance Tax. If you survive for seven
years from the date of the gi!, no Inheritance Tax arises on the PET.
Each tax year, you can give away £3,000 worth of gi!s (your
'annual exemption') tax-free. You can also give away wedding or
registered civil partnership gi!s up to £1,000 per person (£2,500 for
a grandchild and £5,000 for a child). In addition, you can give your
children regular sums of money from your income.
You can also give as many gi!s of up to £250 to as many
individuals as you want, although not to anyone who has already
received a gi! of your whole £3,000 annual exemption. None of these
gi!s are subject to Inheritance Tax.
INVEST INTO IHT-EXEMPT ASSETS
For experienced suitable investors, another way to potentially
minimise Inheritance Tax liabilities is to invest in Inheritance Tax
exempt assets. #ese schemes are higher risk and are therefore
not suitable for all investors, and any investment decisions should
always be made with the bene"t of professional "nancial advice.
One example of this is the Enterprise Investment Scheme (EIS). #e
vast majority of EIS-qualifying investments attract 100% Inheritance
Tax relief via Business Relief (BR) because the qualifying trades for EIS
purposes are very similar to those which qualify for BR. Quali"cation
for BR is subject to the minimum holding period of two years (from
the later of the share issue date and trade commencement).
LIFE INSURANCE WITHIN A TRUST
Writing life insurance in an appropriate Trust is one of the best
ways to protect your family’s future in the event of your death.
Your life insurance policy is a signi"cant asset – and by putting
life insurance in Trust, you can manage the way your bene"ciaries
receive their inheritance.
The proceeds from the policy can be paid directly to your
beneficiaries rather than to your legal estate and will therefore
not be taken into account when Inheritance Tax is calculated.
KEEP WEALTH WITHIN A PENSION
A de"ned contribution pension is normally free of Inheritance
Tax, unlike many other investments. It is not part of your taxable
estate. Keeping your pension wealth within your pension fund
and passing it down to future generations can be very tax-e%cient
estate planning.
If you die before 75, your pension will be passed on tax-free.
However, if you die a!er 75, your bene"ciaries will pay tax on the
proceeds at their highest income tax rate. Your pension will not be
covered by your Will, so you will need to ensure that your pension
provider knows who your nominated bene"ciaries are.
PRESERVED WEALTH FOR FUTURE GENERATIONS
We all have one thing in common: we can’t take our assets with us when
we die. If you want to ensure that your wealth is preserved for future
generations and passed on e%ciently, an estate plan is crucial.O
With careful planning it may be possible
to reduce signi"cantly the need for your
estate to pay Inheritance Tax. We spend a
lifetime generating wealth and assets but not many of us
ensure that it will be passed to the next generation – our
children, grandchildren, nieces, nephews, and so on.
Intergenerational wealth transfer is the passage of wealth
from one family generation to the next.
It’s becoming increasingly important for more people
to consider succession planning and intergenerational
wealth transfer as part of their "nancial planning strategy.
As the Baby Boomer generation reaches retirement age,
we’re on the brink of a vast shi! in assets, unlike any that
we have seen before.
WEALTH TRANSFERS
By 2027, it is expected that wealth transfers will nearly
double from the current level of £69 billion, to £115 billion[1],
coined as ‘#e Great Wealth Transfer’ of the 21st century.
Intergenerational wealth transfer can be a huge issue for
all family members concerned. If done well and executed
properly, it can make a real di$erence to the "nancial
position of the recipients. If misjudged or poorly handled,
it can cause enormous issues, con&icts and resentments
that are never forgotten nor forgiven.
FINANCIAL IMPLICATIONS
One aspect that hasn’t been widely considered is the impact
on other family members, and in particular children, as
their parents think about selling their business or retiring
from their career, perhaps selling their family home, and
starting life in retirement.
It is important that children are prepared to deal with
this process, not least so they are aware of the "nancial
implications and how they may be a$ected. For instance,
children may be expecting to receive a certain amount of
money from their parents – particularly those who are
selling a business – and end up disappointed. Conversely,
they may not be expecting to receive anything, and are
therefore not equipped to deal with a windfall.
CONTRIBUTORY FACTORS
According to the King’s Court Trust, £5.5 trillion will move
hands in the United Kingdom between now and 2055,
with this move set to peak in 2035[2]. Why? Well, there
are a number of contributory factors that account for this.
#e two main reasons are increased net worth and rising
mortality rates.
For those approaching, or in, retirement, it’s important
to have frank and open conversations with children about
expectations and also whether children have the knowledge
and understanding to manage "nancial matters.
APPROACHING RETIREMENT
#is is not an easy exercise, as you may not want to discuss
your "nancial a$airs with your children. You may "nd your
children’s eyes are opened when they see what their parents
have been able to achieve "nancially. #ey may even want
to know how they can do that themselves and change their
own habits.
Everyone works hard to provide for their family, and
perhaps even leave them a legacy. However, parents
approaching retirement shouldn’t feel that their family is
solely reliant on them, or that they need to be responsible
for their children’s "nancial situation.
EXPRESSING WISHES
A good approach is to help your children establish
their own strong "nancial footing and be ready for
intergenerational wealth transfer. For instance, introducing
them to your professional advisers can provide comfort
that there is someone they can go to for advice.
Having open conversations with your children and
expressing wishes and goals will also ensure that your family are
all on the same page, which can help reduce potential con&ict
later when managing intergenerational wealth transfer.
I N C R E A S E D N E T
W O R T H A N D R I S I N G
M O R T A L I T Y R A T E S
!e earlier you put plans in place, the more options you may have
08 | GUIDE TO INHERITANCE TAX PLANNING
THESE ARE SOME QUESTIONS YOU SHOULD
ANSWER AS PART OF YOUR INTERGENERATIONAL
WEALTH TRANSFER PLANS:
„ When did wealth enter my life and how do I think this timing
in&uences my values and family relationships?
„ What impact does a'uence have on my life and the lives of my
next generation?
„ What was the key to my success in creating wealth
and how might telling this story to my future generation be
helpful?
„ What is my biggest concern in raising my children or
grandchildren with a'uence?
„ What conversations (if any) did I have with my parents about
money and wealth growing up?
„ How did my parents prepare me to receive wealth?
„ What lessons did I learn from my parents about money and
"nance that I would like to pass on to my heirs?
„ What family values would I like to pass down to the next
generation and how do I plan on communicating this
family legacy?
„ What concerns do I have about my adult children when it comes
to inheriting and managing the family wealth?
„ How can I help prepare my bene"ciaries to receive wealth and
carry on our family legacy?
BETWEEN GENERATIONS
Despite the vast amount of wealth likely to be passed down between
generations, those in line for inheritance could end up being over-
reliant on their expected windfall. #e key will be to ensure younger
generations are able to get involved and understand how to handle
the wealth they will be inheriting, as well as being able to make good
decisions about the wealth that they generate themselves.
You need to consider who will receive what and whether you
want to pass your wealth during your lifetime or on death. #ese
decisions then need to be balanced by the tax implications of any
proposed planning. #is is especially important at what can be a
highly stressful time. By making advanced preparations, the burden
of "ling complicated Inheritance Tax returns can be reduced. It’s
worth noting that UK Inheritance Tax receipts exceed £3 billion
from 17,900 estates in 2019[3].O
Source data:
[1] Kings Court Trust, ‘Passing on the Pounds – !e rise of the
UK’s inheritance economy’.
[2] Resolution Foundation, Intergenerational Commission. ‘!e
million dollar be-question’.
[3] Prudential 2019.
09 | GUIDE TO INHERITANCE TAX PLANNING
Making provision for Inheritance Tax needs
to be in balance with the plan for your other
"nancial priorities. E$ective estate preservation
planning could save a family a potential Inheritance Tax
bill amounting to hundreds of thousands of pounds.
Inheritance Tax was introduced in 1986. It replaced
Capital Transfer Tax, which had been in force since 1975 as
a successor to Estate Duty.
Inheritance Tax planning has become more important
than ever, following the government’s decision to freeze
the £325,000 lifetime exemption, with in&ation eroding
its value every year and subjecting more families to
Inheritance Tax.
AUTOMATIC RIGHTS
Inheritance Tax is usually payable on death. When a person
dies, their assets form their estate. Any part of an estate
that is le! to a spouse or registered civil partner will be
exempt from Inheritance Tax. #e exception is if a spouse
or registered civil partner is domiciled outside the UK.
Unmarried partners, no matter how long-standing, have no
automatic rights under the Inheritance Tax rules.
However, there are steps people can take to reduce
the amount of money their bene"ciaries have to pay if
Inheritance Tax a$ects them. Where a person’s estate is le!
to someone other than a spouse or registered civil partner
(i.e. to a non-exempt bene"ciary), Inheritance Tax will be
payable on the amount that exceeds the £325,000 Nil-Rate
Band (NRB) threshold. #e threshold is currently frozen at
£325,000 until the tax year 2021/22.
DECEASED SPOUSE
Every individual is entitled to a NRB (that is, every
individual is entitled to leave an amount of their estate
up to the value of the NRB threshold to a non-exempt
beneficiary without incurring Inheritance Tax). If a
widow or widower of the deceased spouse has not used
their entire NRB, the NRB applicable at the time of
death can be increased by the percentage of the NRB
unused on the death of the deceased spouse, provided
the executors make the necessary elections within two
years of your death.
To calculate the total amount of Inheritance Tax payable
on a person’s death, gi!s made during their lifetime that
are not exempt transfers must also be taken into account.
Where the total amount of non-exempt gi!s made within
seven years of death plus the value of the element of the
estate le! to non-exempt bene"ciaries exceeds the nil-rate
threshold, Inheritance Tax is payable at 40% on the amount
exceeding the threshold.
TAPERED AWAY
#is percentage reduces to 36% if the estate quali"es for
a reduced rate as a result of a charity bequest. In some
circumstances, Inheritance Tax can also become payable on
the lifetime gi!s themselves – although gi!s made between
three and seven years before death could qualify for taper
relief, which reduces the amount of Inheritance Tax payable.
From 6 April 2017, an Inheritance Tax Residence Nil-Rate
Band (RNRB) was introduced in addition to the standard
NRB. It’s worth currently up to £175,000 for the 2021/22 tax
year. It starts to be tapered away if an Inheritance Tax estate
is worth more than £2 million on death.
RESIDENTIAL PROPERTY
Unlike the standard NRB, it’s only available for transfers on
death. It’s normally available if a person leaves a residential
property that they’ve occupied as their home outright to
direct descendants.
It might also apply if the person sold their home or
downsized from 8 July 2015 onwards. If spouses or
registered civil partners don’t use the RNRB on "rst
death – even if this was before 6 April 2017 – there are
transferability options on the second death.
PERSONAL REPRESENTATIVES
Executors or legal personal representatives typically
have six months from the end of the month of death to
pay any Inheritance Tax due. The estate can’t pay out
to the beneficiaries until this is done. The exception
is any property, land or certain types of shares where
the Inheritance Tax can be paid in instalments.
Beneficiaries then have up to ten years to pay the tax
owing, plus interest.O
M O R E F A M I L I E S
S U B J E C T T O
I N H E R I T A N C E T A X
Balancing your plan with other "nancial priorities is key
10 | GUIDE TO INHERITANCE TAX PLANNING
11 | GUIDE TO INHERITANCE TAX PLANNINGIt’s important to make sure that a!er you die, your assets and
possessions go to the people and organisations you choose,
such as family members and charities you want to support.
Wills and Inheritance Tax planning more broadly are sensitive
subjects for households across the UK and are o!en thought of as
slightly taboo topics. However, the global coronavirus (COVID-19)
pandemic has focused minds and given us space to think.
And it seems that it’s prompted more people to take action, from
making changes to existing Wills to encouraging them to think
about writing one for the "rst time. But worryingly, three in "ve
(59%) UK adults have not written a Will, new research[1] reveals.
#is equates to 31 million people, whose property, "nancial and
other assets could be le! to someone they have not chosen when they
die. Of those who have not written a Will yet, 22% are over the age of
75 and 39% are aged 65-74. Worryingly, a third (32%) of those aged
75+ haven’t even started thinking about writing a Will yet. 
 
STARTED THINKING ABOUT WRITING A WILL
Since the start of lockdown, those aged between 25-34 have,
however, started the Will writing process or made changes to their
existing one. During this period, a "!h (21%) of 25-34-year-olds
started thinking about writing a Will for the "rst time and one in
ten (12%) wrote one. A further 30% updated an existing Will.
Respondents were also asked if they had a Lasting Power of
Attorney (LPA) in place yet, "nding that just 12% of UK adults had
an LPA in place before the COVID-19 lockdown. However, 6% said
they had engaged a legal professional or the O%ce of the Public
Guardian during the pandemic to put an LPA in place.
TYPES OF LASTING POWER OF ATTORNEY
HEALTH AND WELFARE LPAS
A Health and Welfare LPA allows you to appoint an Attorney to
make decisions about matters such as:
„ Your medical care
„ Where you live
„ Your daily routine, such as what you eat and what you wear
„ Whom you have contact with
„ Whether you have life-sustaining treatment – although only if
you have given express permission
PROPERTY AND FINANCIAL AFFAIRS LPAS
A Property and Financial A$airs LPA gives your Attorney the
power to do things such as:
„ Buy and sell your property
„ Pay your bills
„ Collect your pension or bene"ts
„ Manage your bank accounts
 
EMOTIONAL AND FINANCIAL PRESSURE
A Will can provide peace of mind that not only will the correct
bene"ciaries bene"t from any estate distribution, but also that it
is done as e%ciently as possible. But only 13% of UK adults have
written a living Will, which is used to provide advanced decisions
on refusing medical treatments if you become terminally ill or lose
the ability to make decisions around medical treatment yourself. A
further 6% said they had made a living Will, now more commonly
called an ‘advance decision.’
While no one likes to think about their own mortality, getting
your house in order by having the right legal instructions can
take away much of the emotional and "nancial pressure at a very
di%cult time. Taking the "rst step is always the most di%cult but
puts you as the benefactor in the driving seat.
 
ESPECIALLY IMPORTANT IF YOU HAVE CHILDREN
A Will can help reduce the amount of Inheritance Tax that might
be payable on the value of the property and money you leave
behind. Writing a Will is especially important if you have children
or other family who depend on you "nancially, or if you want to
leave something to people outside your immediate family.
If you die without a valid Will, you will be dying intestate and
your estate will pass to those entitled under the intestacy rules.
Under the intestacy rules, your estate could pass to unintended
bene"ciaries and leave your loved ones in a very di%cult situation
at an already emotionally challenging time.O
Source data:
[1] Research from Canada Life 25/09/20
M A K I N G A W I L L
!ree in "ve UK adults have not made provision
The introduction of the
Residence Nil-Rate Band
(RNRB) has made it easier
for some individuals to pass on the
family home. #e rise in property
prices throughout the UK means that
even those with modest assets may
exceed the £325,000 Nil-Rate Band
(NRB) for Inheritance Tax.
On 6 April 2017 the RNRB band
came into e$ect. It provides an
additional nil-rate band where an
individual dies a!er 6 April 2017,
owning a residence which they leave
to direct descendants.
During the 2021/22 tax year the
maximum RNRB available is £175,000.
Just like the standard NRB, any unused
RNRB on the "rst death of a married
couple or registered civil partners has
the potential to be transferable even if
the "rst death occurred before 6 April
2017. However, the RNRB does come
with conditions and so may not be
available or available in full to everyone.
#e current legislation requires the
NRB, RNRB and threshold for the
RNRB taper to increase in line with
the Consumer Prices Index (CPI) in
each year from 2021/22.
TAXABLE ESTATE
#e RNRB is set against the taxable
value of the deceased’s estate – not
just the value of the property. Unlike
the existing NRB, it doesn’t apply to
transfers made during an individual’s
lifetime. For married couples and
registered civil partners, any unused
RNRB can be claimed by the surviving
spouse’s or registered civil partner’s
personal representatives to provide a
reduction against their taxable estate.
Where an estate is valued at more
than £2 million, the RNRB will be
progressively reduced by £1 for every
£2 that the value of the estate exceeds
the threshold. Special provisions apply
where an individual has downsized to
a lower value property or no longer
owns a home when they die.
LIFETIME GIFTS
In determining whether the £2 million
threshold is breached, it is necessary
to ignore reliefs and exemptions.
#is means that business relief and
agricultural relief are ignored when
determining the value of the estate for
the RNRB, even though they are taken
into account to calculate the liability to
Inheritance Tax.
As the £2 million is based on the
value of the assets owned at the time
of death, it does not include any
lifetime gi!s made by the deceased,
even if they were made within seven
years of death and are included in the
Inheritance Tax calculation.
DIRECT DESCENDANTS
#e £2 million threshold is frozen
until 5 April 2021, a!er which, like
the standard NRB and Inheritance
Tax RNRB, it will increase in line with
CPI. In the 2021/22 tax year, estates
of £2.35 million or greater will not
bene"t from an RNRB.
#e amount of RNRB available to be
set against an estate will be the lower of
the value of the home, or share, that’s
inherited by direct descendants and
the maximum RNRB available when
the individual died.
DECEASED SPOUSE
Where the value of the property is
lower than the maximum RNRB,
the unused allowance can’t be o$set
against other assets in the estate but
can be transferred to a deceased
spouse or registered civil partner’s
estate when they die, having le! a
residence to their direct descendants.
A surviving spouse or registered
civil partner’s personal representatives
may claim any unused RNRB available
from the estate of the "rst spouse or
registered civil partner to die.
RESIDENTIAL INTEREST
#is is subject to the second death
occurring on or a!er 6 April 2017
and the survivor passing a residence
they own to their direct descendants.
#is can be any home they’ve lived in
– there’s no requirement for them to
have owned or inherited it from their
late spouse or registered civil partner.
In order to pass on a qualifying
residential interest and use the
Inheritance Tax RNRB, the property
needs to be ‘closely inherited’. #is
means that the property must be
passed to direct descendants.
SPECIAL GUARDIAN
For these purposes, direct descendants
are lineal descendants of the deceased
– children, grandchildren and any
remoter descendants together with
their spouses or registered civil
partners, including their widow,
widower or surviving registered
civil partner. Also included are a
step, adopted or fostered child of
the deceased, or a child to which the
deceased was appointed as a guardian
or a special guardian when the child
was under 18.
Direct descendant doesn’t include
nephews, nieces, siblings and other
relatives. If an individual, a married
couple or registered civil partners do not
have any direct descendants that qualify,
they will be unable to use the RNRB.
DEEMED RESIDENCE
#e facility to claim unused RNRB
applies regardless of when the "rst
death occurred – if this was before
it was introduced, then 100% of a
deemed RNRB of £175,000 can be
claimed, unless the value of the "rst
I N H E R I T A N C E
T A X R E S I D E N C E
N I L - R A T E B A N D
Passing on your wealth in the right way is key for its preservation
12 | GUIDE TO INHERITANCE TAX PLANNING
spouse or registered civil partner’s estate
exceeded £2 million, and tapering of the
RNRB applies.
#e unused RNRB is represented as a
percentage of the maximum RNRB that
was available on "rst death – meaning the
amount available against the survivor’s
estate will bene"t from subsequent
increases in the RNRB.
DEED OF VARIATION
#e transferable amount is capped at 100%
– claims for unused RNRB from more than
one spouse or registered civil partner are
possible but in total can’t be more than
100% of the maximum available amount.
Under the RNRB provisions, direct
descendants inherit a home that’s le! to
them which becomes part of their estate.
#is could be under the provisions of the
deceased’s Will, under the rules of intestacy
or by some other legal means as a result of
the person’s death – for example, under a
deed of variation.
MAIN RESIDENCE
#e RNRB applies to a property that’s
included in the deceased’s estate and one
in which they have lived. It needn’t be
their main residence, and no minimum
occupation period applies. If an individual
has owned more than one home, their
personal representatives can elect which
one should qualify for RNRB.
#e open market value of the property will
be used less any liabilities secured against it,
such as a mortgage. Where only a share of
the home is le! to direct descendants, the
value and RNRB is apportioned.
COMPLEX AREA
A home may already be held in Trust when
an individual dies or it may be transferred
into Trust upon their death. Whether
the RNRB will be available in these
circumstances will depend on the type of
Trust, as this will determine whether the
home is included in the deceased’s estate,
and also whether direct descendants are
treated as inheriting the property.
#is is a complex area, and HM Revenue
& Customs provides only general guidance,
with a recommendation that a solicitor
or Trust specialist should be consulted to
discuss whether the RNRB applies.
DOWNSIZING ADDITION
Estates that don’t qualify for the full
amount of RNRB may be entitled to
an additional amount of RNRB – a
downsizing addition if the following
conditions apply: the deceased disposed
of a former home and either downsized
to a less valuable home or ceased to
own a home on or after 8 July 2015;
the former home would have qualified
for the RNRB if it had been held until
death; and at least some of the estate is
inherited by direct descendants.
The downsizing addition will generally
represent the amount of ‘lost’ RNRB that
could have applied if the individual had
died when they owned the more valuable
property. However, it won’t apply where
the value of the replacement home they
own when they die is worth more than
the maximum available RNRB. It’s also
limited by the value of other assets left to
direct descendants.
PLANNING TECHNIQUES
#e downsizing addition can also apply
where an individual hasn’t replaced a
home they previously disposed of –
provided they leave other assets to direct
descendants on their death. #e deceased’s
personal representatives must make a
claim for the downsizing addition within
two years of the end of the month in which
the individual died.
Di$erent planning techniques are
available to address a potential Inheritance
Tax liability, and these can be incorporated
into the "nancial arrangements of any
individual whose estate is likely to exceed
the threshold.O
13 | GUIDE TO INHERITANCE TAX PLANNING
Inheritance Tax exemptions can be achieved by means
of making certain exempt transfers, which apply in a
number of cases including wedding gi!s, life assurance
premiums, gi!s to your family and charitable giving.
If appropriate, you can transfer some of your assets
while you’re alive – these are known as lifetime transfers.
Whilst we are all free to do this whenever we want, it is
important to be aware of the potential implications of
such gi!s with regard to Inheritance Tax. #e two main
types are ‘potentially exempt transfers’ and ‘chargeable
lifetime transfers’.
EXEMPT TRANSFERS
Potentially exempt transfers are lifetime gi!s made directly
to other individuals, which includes gi!s to Bare Trusts.
A similar lifetime gi! made to most other types of Trust
is a chargeable lifetime transfer. #ese rules apply to non-
exempt transfers: gi!s to a spouse are exempt, so are not
subject to Inheritance Tax.
Where a potentially exempt transfer fails to satisfy
the conditions to remain exempt – because the person
who made the gift died within seven years – its value
will form part of their estate. Survival for at least
seven years, on the other hand, ensures full exemption
from Inheritance Tax. A chargeable lifetime transfer
is not conditionally exempt from Inheritance Tax.
If it is covered by the Nil-Rate Band (NRB) and the
transferor survives at least seven years, it will not
attract a tax liability, but it could still impact on other
chargeable transfers.
SEVEN YEARS
Chargeable lifetime transfers that exceed the available
NRB when they are made result in a lifetime Inheritance
Tax liability. Failure to survive for seven years results
in the value of the chargeable lifetime transfers being
included in the estate. If the chargeable lifetime transfers
are subject to further Inheritance Tax on death, a credit
is given for any lifetime Inheritance Tax paid.
Following a gi! to an individual or a Bare Trust (a
basic Trust in which the bene"ciary has the absolute
right to the capital and assets within the Trust, as well as
the income generated from these assets), there are two
potential outcomes: survival for seven years or more, and
death before then. #e former results in the potentially
exempt transfer becoming fully exempt and no longer
"guring in the Inheritance Tax assessment. In other
case, the amount transferred less any Inheritance Tax
exemptions is ‘notionally’ returned to the estate.
TAX CONSEQUENCES
Anyone utilising potentially exempt transfers for tax
migration purposes, therefore, should consider the
consequences of failing to survive for seven years. Such
an assessment will involve balancing the likelihood of
surviving for seven years against the tax consequences of
death within that period.
Failure to survive for the required seven-year period
results in the full value of the potentially exempt transfers
being notionally included within the estate; survival
beyond then means nothing is included. It is taper relief
L I F E T I M E T R A N S F E R S
Giving away money from your estate to reduce your Inheritance Tax bill
14 | GUIDE TO INHERITANCE TAX PLANNING
which reduces the Inheritance Tax liability
(not the value transferred) on the failed
potentially exempt transfers a!er the full
value has been returned to the estate.
EARLIER TRANSFERS
#e value of the potentially exempt transfers
is never tapered. #e recipient of the failed
potentially exempt transfers is liable for the
Inheritance Tax due on the gi! itself and
bene"ts from any taper relief. #e Inheritance
Tax due on the potentially exempt transfers is
deducted from the total Inheritance Tax bill,
and the estate is liable for the balance.
Lifetime transfers are dealt with in
chronological order upon death; earlier
transfers are dealt with in priority to later
ones, all of which are considered before the
death estate. If a lifetime transfer is subject
to Inheritance Tax because the NRB is not
su%cient to cover it, the next step is to
determine whether taper relief can reduce
the tax bill for the recipient of the potentially
exempt transfers.
SLIDING SCALE
#e amount of Inheritance Tax payable is
not static over the seven years prior to death.
Rather, it is reduced according to a sliding
scale dependant on the passage of time from
the giving of the gi! to the individual’s death.
No relief is available if death is within three
years of the lifetime transfer. For survival for
between three and seven years, taper relief at
the following rates is available.
TAPER RELIEF
#e rate of Inheritance Tax gradually reduces
over the seven-year period – this is called
taper relief. It works like this:
*How long ago was the gi# made?
**How much is the tax reduced?
*0-3 years
**No reduction
3-4 years
20%
4-5 years
40%
5-6 years
60%
6-7 years
80%
MORE THAN 7 YEARS
NO TAX TO PAY
It’s important to remember that taper
relief only applies to the amount of tax the
recipient pays on the value of the gi! above
the NRB. #e rest of your estate will be
charged with the full rate of Inheritance Tax
– usually 40%.
DONOR PAYS
The tax treatment of chargeable lifetime
transfers has some similarities to
potentially exempt transfers but with a
number of differences. When a chargeable
lifetime transfer is made, it is assessed
against the donor’s NRB. If there is an
excess above the NRB, it is taxed at 20%
if the recipient pays the tax or 25% if the
donor pays the tax.
#e same seven-year rule that applies to
potentially exempt transfers then applies.
Failure to survive to the end of this period
results in Inheritance Tax becoming due on
the chargeable lifetime transfers, payable by
the recipient. #e tax rate is the usual 40%
on amounts in excess of the NRB, but taper
relief can reduce the tax bill, and credit is
given for any lifetime tax paid.
GIFT OF CAPITAL
#e seven-year rules that apply to potentially
exempt transfers and chargeable lifetime
transfers could increase the Inheritance Tax
bill for those who fail to survive for long
enough a!er making a gi! of capital.
If Inheritance Tax is due in respect of a failed
potentially exempt transfer, it is payable by the
recipient. If Inheritance Tax is due in respect
of a chargeable lifetime transfer on death,
it is payable by the trustees. Any remaining
Inheritance Tax is payable by the estate.
APPROPRIATE TRUST
#e Inheritance Tax di$erence can be
calculated and covered by a level or
decreasing term assurance policy written
in an appropriate Trust for the bene"t of
whoever will be a$ected by the Inheritance
Tax liability and in order to keep the proceeds
out of the settlor’s Inheritance Tax estate.
Which is more suitable and the level of cover
required will depend on the circumstances. If
the potentially exempt transfers or chargeable
lifetime transfers are within the NRB, taper
relief will not apply.
However, this does not mean that no
cover is required. Death within seven
years will result in the full value of the
transfer being included in the estate,
with the knock-on effect that other estate
assets up to the value of the potentially
exempt transfers or chargeable lifetime
transfers could suffer tax that they would
have avoided had the donor survived for
seven years.
ESTATE LEGATEES
A seven-year level term policy could be
the most appropriate type of policy in this
situation. Any additional Inheritance Tax
is payable by the estate, so a Trust for the
benefit of the estate legatees will normally
be required.
Where the potentially exempt transfers or
chargeable lifetime transfers exceed the NRB,
the tapered Inheritance Tax liability that will
result from death a!er the potentially exempt
transfers or chargeable lifetime transfers are
made can be estimated.
‘GIFT INTER VIVOS’
A special form of ‘gift inter vivos’ (a life
assurance policy that provides a lump
sum to cover the potential Inheritance
Tax liability that could arise if the donor
of a gift dies within seven years of making
the gift) is put in place (written in an
appropriate Trust) to cover the gradually
declining tax liability that may fall on the
recipient of the gift.
Trustees might want to use a life of another
policy to cover a potential liability. Taper
relief only applies to the tax: the full value of
the gi! is included within the estate, which
in this situation will use up the NRB that
becomes available to the rest of the estate
a!er seven years.
WHOLE OF LIFE COVER
#erefore, the estate itself will also be liable
to additional Inheritance Tax on death
within seven years, and depending on the
circumstances, a separate level term policy
written in an appropriate trust for the estate
legatees might also be required.
Where an Inheritance Tax liability
continues after any potentially exempt
transfers or chargeable lifetime transfers
have dropped out of account, whole of
life cover written in an appropriate Trust
should also be considered. O
15 | GUIDE TO THE FUTURE OF RETIREMENT
16 | GUIDE TO INHERITANCE TAX PLANNINGThinking about death isn't easy. Talking about it is
even harder. #e reality of our own mortality is a
tough subject, but a discussion will ensure your
assets are le! to the right people.
If you want to be sure your wishes are met a!er you die,
then it’s important to have a Will. A Will is the only way
to make sure your money and possessions that form your
estate go to the people and causes you care about.
Unmarried partners, including same-sex couples who
don’t have a registered civil partnership, have no right to
inherit if there is no Will. One of the main reasons also for
drawing up a Will is to mitigate a potential Inheritance Tax
liability.
STATUTORY RULES
Where a person dies without making a Will, the
distribution of their estate becomes subject to the statutory
rules of intestacy (where the person resides also determines
how their property is distributed upon their death, which
includes any bank accounts, securities, property and other
assets they own at the time of death), which can lead to
some unexpected and unfortunate consequences.
#e bene"ciaries of the deceased person that they want
to bene"t from their estate may be disinherited or le!
with a substantially smaller proportion of the estate than
intended. Making a Will is the only way for an individual
to indicate whom they want to bene"t from their estate.
Failure to take action could compromise the long-term
"nancial security of the family.
IMPLICATIONS OF DYING
WITHOUT MAKING A WILL
„ Assets people expected to pass entirely to their spouse
or registered civil partner may have to be shared with
children
„ An unmarried partner doesn’t automatically inherit
anything and may need to go to court to claim for a
share of the deceased’s assets
„ A spouse or registered civil partner from whom a
person is separated, but not divorced, still has rights to
inherit from them
„ Friends, charities and other organisations the person
may have wanted to support will not receive anything
„ If the deceased person has no close family, more distant
relatives may inherit
„ If the deceased person has no surviving relatives at all,
their property and possessions may go to the Crown
LEGAL RESPONSIBILITY
Without a Will, relatives who inherit under the law will
usually be expected to be the executors (someone named
in a Will, or appointed by the court, who is given the
legal responsibility to take care of a deceased person’s
remaining "nancial obligations) of your estate. #ey
might not be the best people to perform this role. Making
a Will lets the person decide the people who should take
on this task.
Where a Will has been made, it’s important to review
it regularly to take account of changing circumstances.
Unmarried partners have no right to inherit under
the intestacy rules, nor do step-children who haven’t
been legally adopted by their step-parent. Given today’s
complicated and changing family arrangements, Wills are
o!en the only means of ensuring legacies for children of
earlier relationships.
SIMPLIFYING THE DISTRIBUTION OF ESTATES
FOR A SURVIVING SPOUSE OR REGISTERED
CIVIL PARTNER
Changes to the intestacy rules covering England and Wales,
which became e$ective on 1 October 2014, were aimed at
simplifying the distribution of an estate and could mean a
surviving spouse or registered civil partner receives a larger
inheritance than under the previous rules.
Making a Will is also the cornerstone for Inheritance Tax
and estate planning.
Before making a Will, a person needs to consider:
„ Who will carry out the instructions in the Will (the
executor/s)
„ Nominating guardians to look a!er children if the
person dies before they are aged 18
„ Making sure people the person cares about
are provided for
L E A V I N G Y O U R
L E G A C Y B E H I N D
Considerations when making a Will
17 | GUIDE TO INHERITANCE TAX PLANNING„ What gi!s are to be le! for family and
friends, and deciding how much they
should receive
„ What provision should be taken to
minimise any Inheritance Tax that
might be due on the person’s death
PREPARING A WILL
Before preparing a Will, a person needs
to think about what possessions they are
likely to have when they die, including
properties, money, investments and
even animals. Prior to an estate being
distributed among beneficiaries, all debts
and the funeral expenses must be paid.
When a person has a joint bank account,
the money passes automatically to the
other account holder, and they can’t leave
it to someone else.
Estate assets may include:
„ A home and any other properties owned
„ Savings in bank and building society
accounts
„ Insurance, such as life assurance or an
endowment policy
„ Pension funds that include a lump sum
payment on death
„ National Savings, such as Premium Bonds
„ Investments such as stocks and shares,
investment trusts, Individual
Savings Accounts
„ Motor vehicles
„ Jewellery, antiques and other
personal belongings
„ Furniture and household contents
Liabilities may include:
„ Mortgage(s)
„ Credit card balance(s)
„ Bank overdra!(s)
„ Loan(s)
„ Equity release
JOINTLY OWNED
PROPERTY AND POSSESSIONS
Arranging to own property and other
assets jointly can be a way of protecting
a person’s spouse or registered civil
partner. For example, if someone has a
joint bank account, their partner will
continue to have access to the money
they need for day-to-day living without
having to wait for their affairs to be
sorted out.
There are two ways that a person
can own something jointly with
someone else:
AS TENANTS IN COMMON
(CALLED ‘COMMON OWNERS’
IN SCOTLAND)
Each person has their own distinct shares
of the asset, which do not have to be equal.
#ey can say in their Will who will inherit
their share.
AS JOINT TENANTS (CALLED
‘JOINT OWNERS’ IN SCOTLAND)
Individuals jointly own the asset so, if they die,
the remaining owner(s) automatically inherits
their share. A person cannot use their Will to
leave their share to someone else.
PARTIAL INTESTACY
#is can sometimes happen even when there
is a Will, for example, when the Will is not
valid, or when it is valid but the bene"ciaries
die before the testator (the person making the
Will). Intestacy can also arise when there is a
valid Will but some of the testator’s (person
who has made a Will or given a legacy) assets
were not disposed of by the Will. #is is
called a ‘partial intestacy’.
Intestacy therefore arises in all cases
where a deceased person has failed to
dispose of some or all of his or her assets
by Will, hence the need to review a Will
when events change. O
18 | GUIDE TO INHERITANCE TAX PLANNINGT R U S T S
‘Ring-fencing’ assets to protect family wealth for future generations
Trusts are used to protect family wealth for future generations, reducing the inter-generational
&ow of Inheritance Tax and ensuring bloodline protection for your estate from outside claims.
#e way in which assets held within Trusts are treated for Inheritance Tax purposes depends
on whether the choice of bene"ciaries is "xed or discretionary.
#e most popular types of Trust commonly used for Inheritance Tax planning can usually be written
on either an ‘absolute’ or a ‘discretionary’ basis and the taxation treatment is very di$erent for each.
A Trust is a "duciary arrangement that allows a third-party, or trustee, to hold assets on behalf of a
bene"ciary or bene"ciaries. Once the Trust has been created, a person can use it to ‘ring-fence’ assets.
Trusts terms:
„ Settlor – the person setting up the Trust.
„ Trustees – the people tasked with looking a!er the Trust and paying out its assets.
„ Bene"ciaries – the people who bene"t from the assets held in Trust.
19 | GUIDE TO INHERITANCE TAX PLANNINGBare Trusts are also known as ‘Absolute’ or ‘Fixed
Interest Trusts’, and there can be subtle di$erences.
#e settlor – the person creating the Trust – makes a
gi! into the Trust which is held for the bene"t of a speci"ed
bene"ciary. If the Trust is for more than one bene"ciary,
each person’s share of the Trust fund must be speci"ed.
For lump sum investments, a!er allowing for any
available annual exemptions, the balance of the gi! is a
potentially exempt transfer for Inheritance Tax purposes.
As long as the settlor survives for seven years from the date
of the gi!, it falls outside their estate.
#e Trust fund falls into the bene"ciary’s Inheritance Tax
estate from the date of the initial gi!. With Loan Trusts, there
isn’t any initial gi! – the Trust is created with a loan instead.
And with Discounted Gi! plans, as long as the settlor is
fully underwritten at the outset, the value of the initial gi! is
reduced by the value of the settlor’s retained rights.
INCOME EXEMPTION
When family protection policies are set up in Bare Trusts,
regular premiums are usually exempt transfers for Inheritance
Tax purposes. #e normal expenditure out of income
exemption o!en applies, as long as the cost of the premiums
can be covered out of the settlor’s excess income in the same
tax year, without a$ecting their normal standard of living.
Where this isn’t possible, the annual exemption o!en
covers some or all of the premiums. Any premiums that are
non-exempt transfers into the Trust are potentially exempt
transfers. Special valuation rules apply when existing life
policies are assigned into family Trusts. #e transfer of
value for Inheritance Tax purposes is treated as the greater
of the open market value and the value of the premiums
paid up to the date the policy is transferred into Trust.
PARENTAL SETTLEMENT
#ere’s an adjustment to the premiums paid calculation
for unit-linked policies if the unit value has fallen since the
premium was paid. #e open market value is always used
for term assurance policies that pay out only on death, even
if the value of the premiums paid is greater.
With a Bare Trust, there are no ongoing Inheritance Tax
reporting requirements and no further Inheritance Tax
implications. With protection policies, this applies whether
or not the policy can acquire a surrender value.
Where the Trust holds a lump sum investment, the tax on
any income and gains usually falls on the bene"ciaries. #e
most common exception is where a parent has made a gi!
into Trust for their minor child or stepchild, where parental
settlement rules apply to the Income Tax treatment.
TRUST ADMINISTRATION
#erefore, the Trust administration is relatively
straightforward, even for lump sum investments. Where
relevant, the trustees simply need to choose appropriate
investments and review these regularly.
With a Bare Trust, the trustees look a!er the Trust property
for the known bene"ciaries, who become absolutely entitled
to it at age 18 (age 16 in Scotland). Once a gi! is made or a
Protection Trust set up, the bene"ciaries can’t be changed,
and money can’t be withheld from them beyond the age of
entitlement. #is aspect may make them inappropriate to
many clients who’d prefer to retain a greater degree of control.
TRUST FUND
With a Loan Trust, this means repaying any outstanding
loan. With a Discounted Gi! Trust, it means securing the
settlor’s right to receive their "xed payments for the rest
of their life. With protection policies in Bare Trusts, any
policy proceeds that haven’t been carved out for the life
assured’s bene"t under a Split Trust must be paid to the Trust
bene"ciary if they’re an adult. Where the bene"ciary is a
minor, the trustees must use the Trust fund for their bene"t.
Di%culties can arise if it’s discovered that a Trust
bene"ciary has predeceased the life assured. In this
case, the proceeds belong to the legatees of the deceased
bene"ciary’s estate, which can leave the trustees with
the task of tracing them. #e fact that bene"ciaries are
absolutely entitled to the funds also means the Trust o$ers
no protection of the funds from third-parties, for example,
in the event of a bene"ciary’s divorce or bankruptcy. O
B A R E T R U S T S
Held for the bene"t of a speci"ed bene"ciary
With a Discretionary Trust, the settlor makes a
gi! into Trust, and the trustees hold the Trust
fund for a wide class of potential bene"ciaries.
#is is known as ‘settled’ or ‘relevant’ property. For lump
sum investments, the initial gi! is a chargeable lifetime
transfer for Inheritance Tax purposes.
It’s possible to use any available annual exemptions. If the
total non-exempt amount gi!ed is greater than the settlor’s
available Nil-Rate Band (NRB), there’s an immediate
Inheritance Tax charge at the 20% lifetime rate – or
e$ectively 25% if the settlor pays the tax.
OTHER PLANNING
#e settlor’s available NRB is essentially the current NRB
less any chargeable lifetime transfers they’ve made in the
previous seven years. So in many cases where no other
planning is in place, this will simply be the current NRB,
which is £325,000 up to 2021/22. #e Residence Nil-Rate
Band (RNRB) isn’t available to Trusts or any lifetime gi!ing.
Again, there’s no initial gi! when setting up a Loan
Trust, and the initial gi! is usually discounted when setting
up a Discounted Gi! plan. Where a cash gi! exceeds the
available NRB, or an asset is gi!ed which exceeds 80%
of the NRB, the gi! must be reported to HM Revenue &
Customs (HMRC) on an IHT 100.
FAMILY PROTECTION
When family protection policies are set up in Discretionary
Trusts, regular premiums are usually exempt transfers for
Inheritance Tax purposes. Any premiums that are non-
exempt transfers into the Trust will be chargeable lifetime
transfers. Special valuation rules for existing policies
assigned into Trust apply.
As well as the potential for an immediate Inheritance
Tax charge on the creation of the Trust, there are two other
points at which Inheritance Tax charges will apply. #ese
are known as ‘periodic charges’ and ‘exit charges’. Periodic
charges apply at every ten-yearly anniversary of the
creation of the Trust.
INVESTMENT BOND
Exit charges may apply when funds leave the Trust. #e
calculations can be complex but are a maximum of 6%
of the value of the Trust fund. In many cases, they’ll be
considerably less than this – in simple terms, the 6% is
applied on the value in excess of the Trust’s available NRB.
However, even where there is little or, in some
circumstances, no tax to pay, the trustees still need to
submit an IHT 100 to HMRC. Under current legislation,
HMRC will do any calculations required on request. For
a Gi! Trust holding an investment bond, the value of the
Trust fund will be the open market value of the policy –
normally its surrender value.
RETAINED RIGHTS
For a Loan Trust, the value of the trust fund is the bond
value less the amount of any outstanding loan still
repayable on demand to the settlor. Retained rights can be
recalculated as if the settlor was ten years older
For Discounted Gi! schemes, the value of the Trust fund
normally excludes the value of the settlor’s retained rights
– and in most cases, HMRC are willing to accept pragmatic
valuations. For example, where the settlor was fully
underwritten at the outset, and is not terminally ill at a ten-
yearly anniversary, any initial discount taking account of
the value of the settlor’s retained rights can be recalculated
as if the settlor was ten years older than at the outset.
OPEN MARKET
If a protection policy with no surrender value is held in
a Discretionary Trust, there will usually be no periodic
charges at each ten-yearly anniversary. However, a charge
could apply if a claim has been paid out and the funds are
still in the Trust.
In addition, if a life assured is in severe ill health
around a ten-yearly anniversary, the policy could have
an open market value close to the claim value. If so,
this has to be taken into account when calculating any
periodic charge.
D I S C R E T I O N A R Y
T R U S T S
Wide class of potential bene"ciaries
20 | GUIDE TO INHERITANCE TAX PLANNING
CHARGEABLE EVENT
Where Discretionary Trusts hold investments,
the tax on income and gains can also be complex,
particularly where income-producing assets
are used. Where appropriate, some of these
complications could be avoided by an individual
investing in life assurance investment bonds,
as these are non-income-producing assets and
allow trustees to control the tax points on any
chargeable event gains.
Bare Trusts give the trustees discretion over
who bene"ts and when. #e Trust deed will set out
all the potential bene"ciaries, and these usually
include a wide range of family members, plus any
other individuals the settlor has chosen. #is gives
the trustees a high degree of control over the funds.
#e settlor is o!en also a trustee to help ensure
their wishes are considered during their lifetime.
TRUST PROVISIONS
In addition, the settlor can provide the trustees
with a letter of wishes identifying whom they’d like
to bene"t and when. #e letter isn’t legally binding
but can give the trustees clear guidance, which can
be amended if circumstances change. #e settlor
might also be able to appoint a protector, whose
powers depend on the Trust provisions, but usually
include some degree of veto.
Family disputes are not uncommon, and
many feel they’d prefer to pass funds down the
generations when the bene"ciaries are slightly
older than age 18. A Discretionary Trust also
provides greater protection from third parties, for
example, in the event of a potential bene"ciary’s
divorce or bankruptcy, although in recent years
this has come under greater challenge. O
21 | GUIDE TO INHERITANCE TAX PLANNING
FlexibleTrusts are similar to a fully Discretionary
Trust, except that alongside a wide class of
potential bene"ciaries, there must be at least one
named default bene"ciary. Flexible Trusts with default
bene"ciaries set up in the settlor’s lifetime from 22 March
2006 onwards are treated in exactly the same way as
Discretionary Trusts for Inheritance Tax purposes.
Di$erent Inheritance Tax rules apply to older Trusts set
up by 21 March 2006 that meet speci"ed criteria and some
Will Trusts. All post-21 March 2006 lifetime Trusts of this
type are taxed in the same way as fully Discretionary Trusts
for Inheritance Tax and Capital Gains Tax purposes.
DEFAULT BENEFICIARY
For Income Tax purposes, any income is payable to and
taxable on the default bene"ciary. However, this doesn’t
apply to even regular withdrawals from investment
bonds, which are non-income-producing assets. Bond
withdrawals are capital payments, even though chargeable
event gains are subject to Income Tax. As with Bare
Trusts, the parental settlement rules apply if parents make
gi!s into Trust for their minor children or stepchildren.
SIGNIFICANT DIFFERENCES
When it comes to bene"ciaries and control, there are
no signi"cant di$erences between fully Discretionary
Trusts and this type of Trust. #ere will be a wide range
of potential bene"ciaries. In addition, there will be one or
more named default bene"ciaries.
Naming a default bene"ciary is no more binding on
the trustees than providing a letter of wishes setting out
whom the settlor would like to bene"t from the Trust
fund. #e trustees still have discretion over which of
the default and potential bene"ciaries actually bene"ts
and when. Some older Flexible Trusts limit the trustees’
discretionary powers to within two years of the settlor’s
death, but this is no longer a common feature of this
type of Trust. O
F L E X I B L E T R U S T S
W I T H D E F A U L T
B E N E F I C I A R I E S
Discretion over which of the default and potential bene"ciaries actually bene"t
22 | GUIDE TO INHERITANCE TAX PLANNING
These Trusts are o!en used
for family protection policies
with critical illness or
terminal illness bene"ts in addition
to life cover. Split Trusts can be
Bare Trusts, Discretionary Trusts
or Flexible Trusts with default
bene"ciaries. When using this type of
Trust, the settlor/life assured carves
out the right to receive any critical
illness or terminal illness bene"t from
the outset, so there aren’t any gi! with
reservation issues.
In the event of a claim, the provider
normally pays any policy bene"ts to
the trustees, who must then pay any
carved-out entitlements to the life
assured and use any other proceeds to
bene"t the Trust bene"ciaries.
TRADE-OFF
If terminal illness benefit is
carved out, this could result in the
payment ending up back in the life
assured’s Inheritance Tax estate
before their death. A carved-out
terminal illness benefit is treated
as falling into their Inheritance
Tax estate once they meet the
conditions for payment.
Essentially, these types of Trust o$er
a trade-o$ between simplicity and
the degree of control available to the
settlor and their chosen trustees. For
most, control is the more signi"cant
aspect, especially where any lump sum
gi!s can stay within a settlor’s available
Inheritance Tax NRB.
MAXIMUM CONTROL
Keeping gi!s within the NRB and
using non-income-producing assets
such as investment bonds can allow a
settlor to create a Trust with maximum
control, no initial Inheritance
Tax charge and limited ongoing
administrative or tax burdens.
In other cases, for example,
grandparents funding for school fees,
the Bare Trust may o$er advantages.
#is is because tax will fall on the
grandchildren, and most of the funds
may be used up by the age of 18. #e
considerations are slightly di$erent
when considering family protection
policies, where the settlor will o!en
be dead when policy proceeds are
paid out to bene"ciaries.
POLICY PROCEEDS
A Bare Trust ensures the policy
proceeds will be payable to one
or more individuals, with no
uncertainty about whether the
trustees will follow the deceased’s
wishes. However, this can also mean
that the only solution to a change in
circumstances, such as divorce from
the intended bene"ciary, is to start
again with a new policy.
Settlors are often excluded from
benefiting under Discretionary and
Flexible Trusts. Where this applies,
this type of Trust isn’t suitable
for use with joint life, first death
protection policies if the primary
purpose is for the proceeds to go to
the survivor. O
S P L I T T R U S T S
Family protection policies
23 | GUIDE TO INHERITANCE TAX PLANNING
L A S T I N G P O W E R
O F A T T O R N E Y
Taking control of decisions even in the event you can’t make them yourself
A Lasting Power of Attorney (LPA) enables individuals
to take control of decisions that a$ect them, even
in the event that they can’t make those decisions
for themselves. Without them, loved ones could be forced to
endure a costly and lengthy process to obtain authority to act
for an individual who has lost mental capacity.
An individual can create a LPA covering their property and
"nancial a$airs and/or a separate LPA for their health and
welfare. It’s possible to appoint the same or di$erent attorneys
in respect of each lasting power of attorney, and both versions
contain safeguards against possible misuse.
OWN FINANCIAL AFFAIRS
It’s not hard to imagine the difficulties that could arise
where an individual loses the capacity to manage their own
financial affairs and, without access to their bank account,
pension and investments, family and friends could face
an additional burden at an already stressful time. LPA and
their equivalents in Scotland and Northern Ireland should
be a consideration in all financial planning discussions and
should be a key part of any protection insurance planning
exercise. Planning for mental or physical incapacity should
sit alongside any planning for ill health or unexpected
death.
LOSING MENTAL CAPACITY
Commencing from 1 October 2007, it is no longer possible
to establish a new Enduring Power of Attorney (EPA) in
England and Wales, but those already in existence remain
valid. #e attorney would have been given authority to act in
respect of the donor’s property and "nancial a$airs as soon as
the EPA was created.
At the point the attorney believes the donor is losing their
mental capacity, they would apply to the O%ce of the Public
Guardian (OPG) to register the EPA to obtain continuing
authority to act.
SIMILAR PROVISIONS IN SCOTLAND
Similar provisions to LPAs apply in Scotland. #e ‘granter’
(donor) gives authority to their chosen attorney in respect
of their "nancial and property matters (‘continuing power of
attorney’) and/or personal welfare (‘welfare power of attorney’).
#e latter only takes e$ect upon the granter’s mental
incapacity. Applications for powers of attorney must
be accompanied by a certi"cate con"rming the granter
understands what they are doing, completed by a solicitor or
medical practitioner only.
LPAs don’t apply to Northern Ireland. Instead, those seeking
to make a power of attorney appointment over their "nancial
a$airs would complete an EPA. #is would be e$ective as soon
as it was completed and would only need to be registered in
the event of the donor’s loss of mental capacity with the High
Court (O%ce of Care and Protection).
CONCERNING MEDICAL TREATMENT
It’s usual for the attorney to be able to make decisions about
the donor’s "nancial a$airs as soon as the LPA is registered.
Alternatively, the donor can state it will only apply where the donor
has lost mental capacity in the opinion of a medical practitioner.
A LPA for health and welfare covers decisions relating
to an individual’s day-to-day wellbeing. The attorney may
only act once the donor lacks mental capacity to make the
decision in question. The types of decisions covered might
include where the donor lives and decisions concerning
medical treatment.
LIFE-SUSTAINING TREATMENT
#e donor also has the option to provide their attorney with
the authority to give or refuse consent for life-sustaining
treatment. Where no authority is given, treatment will be
provided to the donor in their best interests.
Unlike the registration process for an EPA, registration for
both types of LPA takes place up front and is not dependent
on the donor’s mental capacity. An attorney must act in the
best interest of the donor, following any instructions and
considering the donor’s preferences when making decisions.
!ey must follow the Mental Capacity Act Code of Practice
which establishes "ve key principles:
1. A person must be assumed to have capacity unless it’s
established he or she lacks capacity.
2. A person isn’t to be treated as unable to make a decision
unless all practicable steps to help him or her do so have
been taken without success.
3. A person isn’t to be treated as unable to make a decision
merely because he or she makes an unwise decision.
4. An act done, or decision made, under the Act for or on
behalf of a person who lacks capacity must be done, or
made, in his or her best interests.
5. Before the act is done, or the decision is made, regard must
be had to whether the purpose for which it’s needed can be
as e$ectively achieved in a way that is less restrictive of the
person’s rights and freedom of action.
24 | GUIDE TO INHERITANCE TAX PLANNING
25 | GUIDE TO INHERITANCE TAX PLANNINGLEGALLY BINDING DUTIES
A donor with mild dementia might be provided with the means to
purchase items for daily living, but otherwise their "nancial matters
are undertaken by their attorney. #e code of practice applies a
number of legally binding duties upon attorneys, including the
requirement to keep the donor’s money and property separate from
their own or anyone else’s.
Anyone aged 18 or over who has mental capacity and isn’t an
undischarged bankrupt may act as an attorney. A trust corporation
can be an attorney for a property and "nancial a$airs LPA. In
practice, attorneys will be spouses, family members or friends, or
otherwise professional contacts such as solicitors.
REPLACEMENT ATTORNEY
Where joint attorneys are being appointed, the donor will
state whether they act jointly (the attorneys must make all
decisions together), or jointly and severally (the attorneys
may make joint decisions or separately), or jointly for some
decisions (for example, the sale of the donor’s property) and
jointly and severally in respect of all other decisions. An
optional but useful feature of the LPA is the ability to appoint
a replacement attorney in the event the original attorney is
no longer able to act.
#e donor can leave instructions and preferences, but if they
don’t their attorney will be free to make any decisions they feel
are correct. Instructions relate to things the attorney should or
shouldn’t do when making decisions – not selling the donor’s home
unless a doctor states the donor can no longer live independently or
a particular dietary requirement would be examples.
‘CERTIFICATE PROVIDER’
Preferences relate to the donor’s wishes, beliefs and values they
would like their attorney to consider when acting on their
behalf. Examples might be ethical investing or living within close
proximity of a relative.
#e following apply to both forms of LPA. A ‘certi"cate provider’
must complete a section in the LPA form stating that as far as they
are aware, the donor has understood the purpose and scope of the
LPA. A certi"cate provider will be an individual aged 18 or over and
either, someone who has known the donor personally well for at
least two years; or someone chosen by the donor on account of their
professional skills and expertise – for example, a GP or solicitor.
CONCERNS OR OBJECTIONS
#ere are restrictions on who may act as a certi"cate provider –
these include attorneys, replacement attorneys, family members
and business associates of the donor. A further safeguard is the
option for the donor to choose up to "ve people to be noti"ed when
an application for the LPA to be registered is being made.
#is allows any concerns or objections to be raised before the
LPA is registered, which must be done within "ve weeks from the
date on which notice is given. #e requirement to obtain a second
certi"cate provider where the donor doesn’t include anyone to be
noti"ed has now been removed as part of the O%ce of the Public
Guardian (OPG) review of LPAs.
COURT OF PROTECTION
A person making a LPA can have help completing it, but they must
have mental capacity when they "ll in the forms. Otherwise, those
seeking to make decisions on their behalf will need to apply to the
Court of Protection for a deputyship order. #is can be expensive
and time-consuming and may require the deputy to submit annual
reports detailing the decisions they have made.
#ere are strict limits on the type of gi!s attorneys can make on
the donor’s behalf. Gi!s may be made on ‘customary occasions’,
for example, birthdays, marriages and religious holidays, or to
any charity to which the donor was accustomed to donating. Gi!s
falling outside of these criteria would need to be approved by the
Court of Protection. An example would be a gi! intended to reduce
the donor’s Inheritance Tax liability. O
26 | GUIDE TO INHERITANCE TAX PLANNINGWhether you have earned your wealth, inherited it or
made shrewd investments, you will want to ensure that
as little of it as possible ends up in the hands of HM
Revenue & Customs.
With careful planning and professional "nancial advice, it is
possible to take preventative action to either reduce or mitigate
a person’s bene"ciaries’ Inheritance Tax bill – or mitigate it
altogether. #ese are some of the main areas to consider.
1. MAKE A WILL
A vital element of e$ective estate preservation is to make a Will.
Making a Will ensures an individual’s assets are distributed in
accordance with their wishes. #is is particularly important if
the person has a spouse or registered civil partner.
Even though there is no Inheritance Tax payable between both
parties, there could be tax payable if one person dies intestate
without a Will. Without a Will in place, an estate falls under the
laws of intestacy – and this means the estate may not be divided up
in the way the deceased person wanted it to be.
2. MAKE ALLOWABLE GIFTS
A person can give cash or gi!s worth up to £3,000 in total each tax
year, and these will be exempt from Inheritance Tax when they die.
#ey can carry forward any unused part of the £3,000 exemption to
the following year, but they must use it or it will be lost.
Parents can give cash or gi!s worth up to £5,000 when a
child gets married, grandparents up to £2,500, and anyone else
up to £1,000. Small gi!s of up to £250 a year can also be made
to as many people as an individual likes.
3. GIVE AWAY ASSETS
Parents are increasingly providing children with funds to help
them buy their own home. #is can be done through a gi!,
and provided the parents survive for seven years a!er making
it, the money automatically moves outside of their estate for
Inheritance Tax calculations, irrespective of size.
4. MAKE USE OF TRUSTS
Assets can be put in an appropriate Trust, thereby no
longer forming part of the estate. There are many types of
Trust available and they can be set up simply at little or no
charge. They usually involve parents (settlors) investing a
sum of money into a Trust. The Trust has to be set up with
trustees – a suggested minimum of two – whose role is to
ensure that on the death of the settlors, the investment is
paid out according to the settlors’ wishes. In most cases,
this will be to children or grandchildren.
#e most widely used Trust is a Discretionary Trust, which
can be set up in a way that the settlors (parents) still have
access to income or parts of the capital. It can seem daunting
to put money away in a Trust, but they can be unwound
in the event of a family crisis and monies returned to the
settlors via the bene"ciaries.
5. NORMAL EXPENDITURE OUT OF INCOME RULE
As well as considering putting lump sums into an
appropriate Trust, people can also make monthly
contributions into certain savings or insurance policies
and put them into an appropriate Trust. #e monthly
contributions are potentially subject to Inheritance Tax,
but if the person can prove that these payments are not
compromising their standard of living, they are exempt.
6. PROVIDE FOR THE TAX
If a person is not in a position to take avoiding action,
an alternative approach is to make provision for paying
Inheritance Tax when it is due. #e tax has to be paid within
six months of death (interest is added a!er this time). Because
probate must be granted before any money can be released
from an estate, the executor may have to borrow money or use
their own funds to pay the Inheritance Tax bill.
#is is where life assurance policies written in an
appropriate Trust come into their own. A life assurance
policy is taken out on both a husband’s and wife’s life with the
proceeds payable only on second death. #e amount of cover
should be equal to the expected Inheritance Tax liability. By
putting the policy in an appropriate Trust, it means it does not
form part of the estate.
#e proceeds can then be used to pay any Inheritance Tax bill
straight away without the need for the executors to borrow. O
P R E S E R V I N G
W E A L T H F O R
F U T U R E G E N E R A T I O N S
Factors likely to have a lasting and positive impact on wealth
27 | GUIDE TO INHERITANCE TAX PLANNINGIf you do not plan for what happens to your assets when you die, more of your estate than necessary could be exposed
to Inheritance Tax. You want to be sure that the right people will get the right amounts at the right time – and that
they are ready to receive potentially large sums.
From essential estate planning, such as the establishment of Wills and Power of Attorney, to options such as making the
most of exemptions, giving away excess income and creating Trusts, there are numerous estate planning possibilities.
Everyone has di$erent requirements and motivations – the right solutions for you are the ones that suit your personal
circumstances. We can work with you to discover what these are. Our estate planning advice service is designed to help
you maximise your wealth and minimise a potential Inheritance Tax bill.
Whether building a "nancial plan with you from the start or reviewing your existing arrangements, we can provide
professional "nancial advice to help guide you through the process to de"ning your goals and recommend a tailored
strategy to meet your individual needs that will be &exible enough to adapt as your life changes. To "nd out more, please
contact us – we look forward to hearing from you.
I N C O N C L U S I O N
Estate planning possibilities
This guide is for your general information and use only, and is not intended to address your particular requirements. The content
should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made
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loss as a result of acts or omissions taken in respect of the content. Thresholds, percentage rates and tax legislation may change
in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the
individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than
you invested. All figures relate to the 2021/22 tax year, unless otherwise stated.
NEED TO START PLANNING TO
PASS ON YOUR WEALTH TO
THE NEXT GENERATION?
If you’ve not made the right arrangements, your family may be faced with an
unexpected or large Inheritance Tax bill to pay in the event of your premature
death. It’s a complex area of financial planning, but with the right professional
advice it can reduce or mitigate the amount of tax payable.
To review your current situation or to discuss the options available, please
contact us for further information – we look forward to hearing from you.
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