Asset protection trusts – good or bad for IHT?
Discussion
My mum & dad are starting to think of how to pass things on to my sister and I and are looking to reduce the inheritance tax we’d have to pay.
As well as the family home they have a couple of other rental properties (were their parents’ homes) – total estimated value about £1.5 million.
Mum called me up the other day to say they were looking at an asset protection trust to stave off the IHT due when they die and what did I think? I’d never heard of them, but it’s this firm:
http://www.universalwealthpreservation.co.uk/wealt...
Are these things good sense, a bad idea, or even some form of scam?
A quick Google shows that, as I understand it, you still have to pay 20% IHT when setting a trust up so not sure how much of a saving this sort of scheme would even be?
None of us have financial backgrounds; they don’t have an accountant as they do their own income tax returns, they have a solicitor but no idea on his IHT abilities; and they don’t have an IFA – Mum said she doesn’t know how to find a good one so if anyone knows a decent IFA in the Taunton (Somerset) region we’d be pleased to hear.
Thanks in advance,
Steve
As well as the family home they have a couple of other rental properties (were their parents’ homes) – total estimated value about £1.5 million.
Mum called me up the other day to say they were looking at an asset protection trust to stave off the IHT due when they die and what did I think? I’d never heard of them, but it’s this firm:
http://www.universalwealthpreservation.co.uk/wealt...
Are these things good sense, a bad idea, or even some form of scam?
A quick Google shows that, as I understand it, you still have to pay 20% IHT when setting a trust up so not sure how much of a saving this sort of scheme would even be?
None of us have financial backgrounds; they don’t have an accountant as they do their own income tax returns, they have a solicitor but no idea on his IHT abilities; and they don’t have an IFA – Mum said she doesn’t know how to find a good one so if anyone knows a decent IFA in the Taunton (Somerset) region we’d be pleased to hear.
Thanks in advance,
Steve
Firstly, I wouldn't go near the link you've posted, personally.
Secondly, get your parents to talk to their solicitor, if he can't advise on estate planning then he may have a partner who can, or may be able to recommend another firm.
Secondly, get your parents to talk to their solicitor, if he can't advise on estate planning then he may have a partner who can, or may be able to recommend another firm.
Edited by anonymous-user on Thursday 31st July 12:47
HI Steve,
Yes, I agree. There's something about there website I just don't like!!
We specialise in WOL plans that can be set up to repay an IHT bill, but your correct in saying your parents need advice before you look at any options.
I have a top rate IFA, who specialises in IHT planning, so let me know if you want his details?
Dale
Yes, I agree. There's something about there website I just don't like!!
We specialise in WOL plans that can be set up to repay an IHT bill, but your correct in saying your parents need advice before you look at any options.
I have a top rate IFA, who specialises in IHT planning, so let me know if you want his details?
Dale
RULE No.1. Never trust a company offering financial advice whose website has multiple spelling or grammatical errors.
No sign of any membership of any regulated agency?
Seriously, don't even think about it whatever their promises are.
JB (regulated) and client of Mr North above who is also regulated and is recommended.
No sign of any membership of any regulated agency?
Seriously, don't even think about it whatever their promises are.
JB (regulated) and client of Mr North above who is also regulated and is recommended.
RULE No.1. Never trust a company offering financial advice whose website has multiple spelling or grammatical errors.
No sign of any membership of any regulated agency?
Seriously, don't even think about it whatever their promises are.
JB (regulated) and client of Mr North above who is also regulated and is recommended.
No sign of any membership of any regulated agency?
Seriously, don't even think about it whatever their promises are.
JB (regulated) and client of Mr North above who is also regulated and is recommended.
Edited by jfbrin on Thursday 31st July 19:56
Steve,
The tax tail should never wag the investment dog - be wary of hideously expensive arrangements which could cost you a fortune and lose you money! IHT is a moving target, there's a wide selection of options these days, most of which, used in conjunction, can defuse risk and offset the threat of IHT.
Get the basics right, whole of life cover (WOL), Gift Inter Vivos cover to all manner of investments and wrappers designed to keep a much as possible in the family. Bear in mind though, there's a balance to be struck between your mum and dad keeping control of, and access to their cash - and ringfencing it from The Treasury.
The tax tail should never wag the investment dog - be wary of hideously expensive arrangements which could cost you a fortune and lose you money! IHT is a moving target, there's a wide selection of options these days, most of which, used in conjunction, can defuse risk and offset the threat of IHT.
Get the basics right, whole of life cover (WOL), Gift Inter Vivos cover to all manner of investments and wrappers designed to keep a much as possible in the family. Bear in mind though, there's a balance to be struck between your mum and dad keeping control of, and access to their cash - and ringfencing it from The Treasury.
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