Trust-based solutions for reducing an inheritance tax bill

An overview of some of the main packaged trust-based IHT solutions offered by life assurance companies
April 2020

Barry Foster

Vice President, Strategic & Technical Sales

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Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (April 2020). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Tax allowances are subject to change and tax treatment depends upon individual circumstances. Case studies are for illustrative purposes only.

Key takeaways:

  • Understanding how the schemes are typically structured
  • A review of how the schemes are treated for tax purposes
  • A consideration of which scheme(s) may be suitable for different clients with different circumstances

There are a number of packaged trust-based inheritance tax (IHT) solutions available. Most are provided by life assurance companies and they generally involve an underlying investment bond as the trustee investment solution.

Rather than provide a detailed technical analysis, we have instead created a summary of the main trust-based solutions available.

 

Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (April 2020). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone. Tax allowances are subject to change and tax treatment depends upon individual circumstances. Case studies are for illustrative purposes only.

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