Case Study: IHT Planning

The Challenge

The client was an elderly mother with an estate worth £3 million. She approached us seeking shelter from Inheritance Tax. Although she had adult children, she did not want to give away control of her assets within her lifetime. She required:

  • A tax efficient way to protect her wealth
  • Complete control over and access to her wealth
  • A solution with immediate effect

The advisor she had spoken to previously required 7-year survival (or 2-year survival in the case of BRR, AIM shares and other investments).

However, the client had a limited life expectancy and therefore securing immediate tax protection for herself and her family was paramount.

We were able to provide a structure appropriate for her limited life expectancy.

Our Approach

We introduced a tax structure for the client that allowed her to retain full control over her wealth and also to take from and distribute her income as she wished. Crucially, her structure protected her from IHT from day one.

Results

Sadly, the client passed away within a year, however we were able to provide peace of mind that the wealth she was leaving behind would be protected from inheritance tax and would provide for her children and their families.

  • 100% UK-based planning
  • No offshore planning
  • No 10-year charges as in traditional trusts
  • IHT shelter from day one

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