Inheritance tax mitigation

One way to mitigate Inheritance Tax (IHT) is to gift money away via a Potentially Exempt Transfer (PET). The two big problems here are 1) The person gifting the assets (the Donor) has to live 7 years for the beneficiaries to benefit from the full tapering tax relief, and it is irrevocable in that the assets have been given away. this can be problematic for older clients or clients in ill health were the life expectancy may be shorter than 7 years, or who simply may not want to relinquish full control of the assets. So what is the answer, well what about investing into a fund with gives full IHT relief after just 2 years, it has also consistently returned 3% net growth, however this is a secondary consideration compared to the IHT mitigation, ergo 40% estate tax savings. One other benefit of this fund is for people who have previously sold a business and have benefitted from Business Property Relief (BPR), if any proceeds from the business sale are reinvested into the fund within 3 years of the sale completion the IHT mitigation is immediate with no two year qualifying time period.

If this is of interest call me now.

 

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