Looking for an introduction or useful refresher on UK tax for savings and especially offshore bonds? Here we take it all the way back to the essentials.
Learning objectives
In this session we covered…
- Overview of different taxes
- UK savings regime
- Structure of bonds
- Taxation of bonds
- Myth busting
- Reasons to use an offshore bond
John Bunker, consultant with Irwin Mitchell, freelance legal and tax trainer and in the process of writing the The Law Society’s Inheritance Tax Planning Handbook, takes us through some estate planning basics, focussing on the processes and procedures to be aware of.
Learning objectives
In this session we covered…
- Changes to the probate application process
- Major changes to the way applications are made for a grant of probate and the aims of HM Courts & Tribunals
- Service (HMCTS); Limits to applying online
- How much information is needed and recent changes Where applications are processed and the new Probate Registry.
- Estates and trusts: variations within 2 years of death
- Basics on using sections 142 (estates) and 144 (trusts), Inheritance Tax Act (IHTA) 1984.
- An introduction to IHT and CGT
- Potential use of variations for securing spouse exemptions and BPR/APR
- RNRB and planning through variations
- IHT process changes for the Covid-19 crisis
- IHT accounts: new procedures to adapt to the situation
- Payments (and repayments) of IHT electronically
- Help in paying IHT during the crisis
What all Paraplanners should know about estate planning
On 11th June, John Bunker joined us for a Howwow special on estate planning basics, focussing on the processes and procedures to be aware of. Plus we dipped into the special measures taken during COVID-19. John delivers legal and tax training, as well as consulting for Irwin Mitchell.
Replay, slides and a couple of questions we didn’t have time to get to
If you missed it or want to watch again, you can watch the replay here. You can also get a copy of John’s slides here.
There were two questions that we didn’t have time to get to on the show but John has taken a look at them and answered them here. We’ve copied and pasted the questions straight from the ‘Ask a question’ area of the Howwow. You can get full context by watching the replay.
Question 1
How is the residence nil rate band impacted where the main residence was owned as tenants in common 50:50 and the 50% paid out to sons, prior to RNRB. Widow has downsized to a property which is now worth less than her own RNRB. Is the deceased’s RNRB lost in this case?
Answer 1
Yes but this isn’t straightforward. There are some principles:
- If a deceased spouse left half to the sons, or that was done from his estate, then the widow’s half share is in her estate and she has a potential NRB of her own plus possibly part TNRB to transfer if the half share of property is less than value of spouse’s NRB.
- If downsized since July 2015, she can look at value of earlier half share of property, and claim a “downsizing addition” on top of the RNRB for the house she has.
- If the spouse died pre RNRB, she can claim TRNRB and may have more than one RNRB if sufficient value in previous property.
- RNRB will be lost if the value of her current property and any downsizing addition is less than the full RNRB available.
Question 2
Can you use a DoV to remove/change benefits which were to be paid to a minor, even if you are looking to give them a share of a house, as an alternative to another asset, to use a RNRB?
Answer 2
You cannot do a DoV to take away anything from a minor. If that minor is the right beneficiary e.g. child or grandchild, and has the right trust in the will (e.g. bare trust or 18-25 if a child) so closely inherits, it does have possibilities.
- If child say has half estate and house worth £500K, their half = £250K and could use £175K RNRB. It doesn’t need a specific gift; it could be just a share of the estate.
Business Property Relief (BPR) is a well-established investment incentive and estate planning tool so we’ll take a closer look at BPR-qualifying investments and how they can complement other inheritance tax planning strategies.
Learning objectives
In this session we covered…
- The types of clients who could benefit from BPR-qualifying investments
- Researching the right provider for your client
- Due diligence
For many clients, trusts will be the backbone of their estate planning. In this session we explore how trusts can be used effectively in estate planning.
Learning objectives
In this session we covered…
- How different types of trusts work, and how they fit with clients’ needs.
- Using trusts and Business Property Relief together.
Exploring three of the most popular estate planning strategies – gifting, trusts and business property relief.
Learning objectives
In this session we covered…
- The pros and cons of gifting, trusts and business property relief.
- The broader inheritance tax landscape, including recent legislation changes like the residence nil-rate band.
- Three planning scenarios where taking a holistic approach worked out best for clients.
Understand the quirks of the Residence Nil Rate Band that can catch an unwitting paraplanner out.
Learning objectives
In this session we covered…
- What does it apply to?
- Who does it apply to?
- Limits on the relief
- How the relief is applied
- The impact of trusts
- Downsizing rules
- Transferability
- Planning opportunities.
A review of FICs to highlight considerations when choosing to create an investment company.
Learning objectives
In this session we covered…
- A review of FICs to highlight considerations when choosing to create an investment company.
Is passing the pension fund directly on to the spouse/next generation the best option for all clients?
Learning objectives
In this session we covered…
- Is passing the pension fund directly on to the spouse/next generation the best option for all clients?
Looking at the tax and admin problems that trustees face.
Learning objectives
In this session we covered…
- Is passing the pension fund directly on to the spouse/next generation the best option for all clients?