With recent changes to capital gains tax rates reaching up to 24% and the CGT annual exemption frozen at just £3,000, many clients are looking for tax-efficient ways to structure their investments.
In his latest ‘Technically speaking’ session for the Paraplanners’ Assembly, Utmost’s Steve Sayer explores how offshore bonds and trust structures work together – offering inheritance tax planning options that provide flexibility for clients who want to be prepared for the ‘what ifs’ of life.
Packed with helpful examples and case studies
Steve brings the options to life with a series of examples of different trust arrangements and how they can be combined.
He’ll show you how discounted gift trusts can provide an immediate reduction in estate value, how loan trusts offer capital access, and why reversionary interest trusts might help hesitant clients take their first steps with inheritance tax planning.
The session includes a detailed case study showing how married clients in their sixties, with £3.5 million in assets, could use multiple trust structures to meet their annual income needs all while reducing their inheritance tax liability.
What’s more, you’ll learn about the planning opportunities that come with non-UK long term residence status and how offshore bonds can keep assets outside the UK inheritance tax net.
And to round off his session, Steve shares a decision-tree approach that you’re bound to find useful when you’re weighing up client needs.
What are the learning outcomes?
Once you’ve watched or listened to this episode, you will:
- Understand some concepts of UK IHT planning including:
- Inheritance planning opportunities using discounted gift, reversionary interest and loan trusts.
- How trusts can be used to provide access to capital and/withdrawals for lifestyle planning.
- Discuss and explain this subject with a client in a clear and concise way.
- Apply this knowledge to appropriate, individual, client scenarios.
