You may wish to pass some assets on to your loved ones.

There are three main ways to achieve this

SIPPs Self Invested Pensions
If you have not drawn on your SIPP and are under 75 it is possible to pass your pension directly onto anyone without any inheritance tax being due. If you are over 75 you can still pass on 55%. This is far better than with an endowment where the pension disappears when you die.

AIM BPR Portfolio’s
Another option is to set up a specialist account managed by us which investments in assets which themselves attract Business Property Tax relief. May AIM shares attract this tax relief. If you invest in such assets they fall outside of your estate after 2 years. You do not have to hold the same shares for 2 years you can hold the assets within a ring fenced portfolio.
CFM has a strong track record in this area.

Essentially 2 years after investing the assets within fall outside of your estate for IHT purposes. I.e. your estate saves 40% IHT.

Setting up a discretionary trust
Another way is to set up a trust and gift assets to it. Usually you would appoint trustees who could simply be family friends to oversee the trust. For example, you may wish to leave money to your grandchildren but are worried that you do not want them to access the money until they are 25 not 18 and also want to stipulate that it is used for a house deposit, education or similar. A discretionary trust may be the answer. You can gift money into the trust. After 7 years there is no Inheritance tax. You can be trustees yourself while alive or appoint friends, sons or daughters. We use specialist lawyers to draft the trust and then manage a portfolio of appropriate shares and funds.
Some firms over complicate this type of arrangement. Please call us for information

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