STEP LONDON CENTRAL BRANCH STEP CHARITY SPECIAL INTEREST GROUP IHT RELIEF FOR 10 PER CENT CHARITY BEQUESTS. Mark Herbert TEP QC, 5 Stone Buildings
|
|
- Sandra Flynn
- 5 years ago
- Views:
Transcription
1 STEP LONDON CENTRAL BRANCH STEP CHARITY SPECIAL INTEREST GROUP IHT RELIEF FOR 10 PER CENT CHARITY BEQUESTS 1. The relevant legislation is contained in Schedule 1A to the Inheritance Tax Act 1984, added by Schedule 33 to the Finance Act It has effect in relation to deaths occurring on or after 6 April We cannot therefore use it by way of a post-2012 variation of the will of a pre-2012 testator. * 2. In essence the relief is that, if an estate includes gifts to charity amounting to 10 per cent, then not only is that exempt from inheritance tax, as it would have been before, it also reduces the rate of tax on the rest of the estate by 10 per cent from 40 per cent to 36 per cent. This represents part of the Big Society. It is a way of encouraging private individuals to shoulder some of the burden of what would otherwise be public expenditure. The heritage of such an idea is at least as old as the Charitable Uses Act Some say myself included that it would have been better if the legislation had applied also to lifetime philanthropy, and I shall return to that point in a moment. But it is a start. 3. What I am going to do is to attempt answers to the following for questions : (a) How does the relief work? (b) How does this affect will drafting? (c) How will it affect deeds of variation? Mark Herbert November 2012
2 (d) How could the relief be extended to lifetime giving? How does the relief work? * 4. The first point is that the estate has to be divided between three components, survivorship, settled property and general. The relief applies separately to each component. On the other hand there is provision for an election to merge two or more components, which might be useful if a charitable bequest exceeds 10 per cent of the general component. The three components are roughly what you might expect, but there are points of importance to bear in mind. * 5. The survivorship component consists of property which is taxable as part of the deceased person s estate but which accrues to another person on death by survivorship. It therefore does not include a severed share of property held in common. On the other hand it does include property held by way of a joint tenancy, even if there is a later deed of variation by which the joint tenancy is treated as if it were severed. It also applies to overseas property which accrues in a similar way under the local law. An estate may include several assets in this category, possibly with more than one joint tenant. But all of them have to be taken together as a single component for the purposes of this relief. This component is not immediately relevant unless the joint owner is itself a charity, but it might become relevant for a merger. 6. The settled property component consists of settled property which is taxable as forming part of the deceased person s estate at his death. It does not include a discretionary trust which comes to an end on the death. So it includes only property in which the deceased person had a pre-2006 interest in possession, an immediate post-death interest or a deceased person s interest. Again the deceased person may have had interests in possession in more than one trust, but they must all be taken together as a single component. * Mark Herbert November 2012
3 7. The general component consists essentially of the free estate. It does not include potentially exempt transfers made during the last seven years of the deceased person s life, nor does it include gifts with reservation of benefit. Those are taxed at the full rate but as lifetime dispositions, so they use up the first tranches of the available nil-rate band. On the other hand the general component does include the deceased person s share of property held in common, including previously joint property where severance has actually occurred during lifetime. Also a gift with reservation of benefit can be brought into the reckoning by an election to merge it with the general component. 8. One way of explaining the relief is to go through a worked example : * Facts : Lord Snooty died in May 2009 leaving his residuary estate then worth 3 million to his widow the second Lady Snooty. She has now died in May 2012 and her estate consists of business property worth 2.4 million and investments worth 4.5 million. She has left a legacy of 535,000 to charity, and residue to her daughter by an earlier marriage. * Lady Snooty also had a life interest under her husband s will in Skyfall Manor, now worth 1.2 million. This passes to the second Lord Snooty. Some years ago she gave her second home worth 300,000 to her daughter, but on examining the facts you find that she reserved a benefit. **** 9. The nil-rate band was unused at Lord Snooty s death, so that ( 325,000) can be added to Lady Snooty s own (also 325,000). The settled property component contained no charitable element, so that will be taxed normally at 40 per cent. The value of Skyfall Manor ( 1.2 million) is exactly 20 per cent of the total taxable estate, so that 20 per cent of the available nil-rate band will be applied to the settled property, 5 per cent ( 300,000 as a proportion of 6 million) and only the remaining 75 per cent will be left for the general component. *12 Mark Herbert November 2012
4 Actual Value General component Value for tax k k Business property 2,400 Investments 4,500 4,500 Less charity bequest (535) (535) Less 75 pc of NRB (487.5) Chargeable transfer 6,365 3,477.5 Add back charity bequest 535 * Baseline amount 4, per cent (1,444.5) 1,444.5 The heiress 4,920.5 ** 535,000 is more than 10 per cent of 4,012,500, and the relief is therefore available. 10. The legislation provides for the executors to merge other components with the general component. The idea is that the reduced rate of tax can then apply to the other component provided that the charity bequest is at least 10 per cent of the aggregate baseline amounts of the two merged components. In the example, the executors might consider merging the settled property and general components. The total baseline amount would be 5,082,500. And 535,000 is more than 10 per cent of the aggregate of the two baseline amounts. There could therefore be an election to merge those two components. But that would benefit little Lord Snooty, not Lady Snooty s heiress daughter, and for all we know they may not be on good terms. If they were on good terms, however, Lord Snooty s tax bill could be reduced by 42,800. The gift with reservation could also be merged, and this would benefit the daughter herself, reducing the tax bill on the gift with Mark Herbert November 2012
5 reservation by a further 10,700. The incentive to merge all three components would seem reasonably clear. 11. The election for merger needs to be made within two years after the deceased person s death, by the personal representatives and all the affected third parties and trustees. The election can be withdrawn, this time within two years and one month after the deceased person s death. HMRC do have a discretion to extend the period. * 12. The legislation also provides for the personal representatives to opt out of the relief. The point here is that, for the first time, the value of the charitable bequest needs to be ascertained in order to operate the relief. Bequests may be of assets other than cash, in which case professional valuations may be needed. Depending on the facts, the executors may form the view that the additional cost of valuation is disproportionate to the relief available, or in an extreme case might actually exceed it. Executors need to apply the usual standards of care and single-minded loyalty to the interests of their beneficiaries when deciding to make such an election. * 13. In real life estates are never so simple. Three particular problems occur to me : (a) The first may arise if land is sold within three years (but more than two years) after the deceased person s estate, and the sale price of all such land is substituted for the value at death. This may require re-computation of the relief. (b) The second problem is what is sometimes jokingly called the Schleswig-Holstein question, which is sometimes a challenge for all of us. What I mean is Part II Chapter III of the Inheritance Tax Act 1984, sections 36 to 42, under which value is attributed to different parts or shares of an estate when some shares are exempt but others not. This is far too complicated to be dealt with in a talk of this kind. Mark Herbert November 2012
6 (c) What happens if (1) the relief would apply to the general component on its own, (2) an election is made to merge another component and (3) the values turn out to be such that the charity bequest is less than 10 per cent of the combined baseline amounts? Is the relief on the general component irretrievably lost? 14. On the positive side, however, the arithmeticians have worked out that the net cost of a 10 per cent charity bequest is exactly the same as the net cost of a 4 per cent bequest. So, if the will prescribes more than 4 per cent, the beneficiaries have a positive incentive to make it 10 per cent. Will drafting 15. Disappointingly perhaps, I shall not attempt to include a drafting lesson in this talk. What I do say, however, is that in general simpler drafting is better than more complex drafting. In that context I heartily recommend the draft suggested by STEP itself, or the similar draft offered by HMRC themselves at paragraph of the IHT manual. * Deeds of variation 16. As for strategy, it may be thought that the best course might be to leave the decision to beneficiaries, by way of a deed of variation. However, that would leave the testator in uncertainty. One already well-known stratagem is to include a charitable gift in the will but subject to a 4 per cent minimum value. Simple arithmetic would then reveal to the supposedly reluctant beneficiaries that the amount of tax (and the net after-tax value of the estate) would be completely unchanged if they were to increase the charity bequest to 10 per cent. In this way the whole of the increase would be borne by the State. Better still, if the minimum in the will is set above 5 per cent, and the beneficiaries increase it to 10 per cent or above, they will actually receive a repayment of tax. Mark Herbert November 2012
7 17. It is essential, as it was before, that the deed of variation must not include anything by way of external consideration. Also there is something new in section 142(3A), namely that you have to show that the charity actually knows about its increased bequest. 18. Even greater flexibility could be provided, over and above the 4 or 5 per cent minimum, by providing an overriding power of appointment with charity as one of the objects. This could be helpful if there were a question whether or not to elect for a merger of components. A section 142 approach might be jeopardised by the prohibition on external consideration moving from the trustees of the other settled property (or, as the case may be, the co-joint-tenant or donee of a gift with reservation), while it would not be improper for the will trustees to take account of negotiations with such third parties when deciding on an exercise of their power of appointment. Lifetime philanthropy 19. At present the relief applies only to testamentary dispositions, and it is not to be immediately extended to lifetime philanthropy. But the consultation paper issued in early 2011 mentioned a promise to have a further consultation on the possibility of extending the concept to lifetime gifts of museum-quality works of art etc to the nation. This consultation was said to be planned for the summer. It did not specify which summer. Many commentators have pointed out that the really important aim should be to encourage lifetime giving, and that the proposed relief in its present form misses the point. Mark Herbert November 2012
8 20. It would be possible to extend the relief to take account not only of bequests to charity, as the legislation already does, but to take account of the cumulative value of lifetime gifts. No doubt HMRC would regard this as tax avoidance, but to my mind the more practical objection is that professional valuations of charitable gifts might then become necessary. Subject to that, this would be an improvement, and it should not be limited to museumquality works of art. To my simple mind the economy needs spendable assets. Mark Herbert TEP QC 5 Stone Buildings 29 November 2012 Mark Herbert November 2012
STEP UK Tax, Trusts and Estates Conference A talk to be given by Lucy Obrey. The Residential Nil Rate Band
STEP UK Tax, Trusts and Estates Conference 2017 A talk to be given by Lucy Obrey The Residential Nil Rate Band Lucy Obrey, TEP Partner Private Client Email: lucy.obrey@higgsandsons.co.uk DDI: 01384 327224
More informationINHERITANCE TAX. Chapter Introduction. 2 Transfer of Value
December 2015 Examinations 135 Chapter 23 INHERITANCE TAX 1 Introduction The majority of UK taxpayers will only experience chargeability to Inheritance Tax (IHT) on one occasion when they die! If their
More informationHM REVENUE & CUSTOMS. Consultation Document: A new incentive for charitable legacies. Publication date: 10 June 2011
HM REVENUE & CUSTOMS Consultation Document: A new incentive for charitable legacies Publication date: 10 June 2011 1 STEP 1.1 The Society of Trust and Estate Practitioners (STEP) is the worldwide professional
More informationΝοtes for Guidance Taxes Consolidation Act 1997 Finance Act 2016 Edition - Part 32
Part 32 Estates of Deceased Persons in Course of Administration and Surcharge on Certain Income of Trustees CHAPTER 1 Estates of deceased persons in course of administration 799 Interpretation (Chapter
More informationAny gifts you make to the Engineers Trust (or any registered charity) during your lifetime or in your will will be exempt from Inheritance Tax.
Thank you Thank you for thinking of the Engineers Trust (the Worshipful Company of Engineers Charitable Trust) in connection with your Will, and for taking the time to read this booklet. We hope that you
More informationCHAPTER 13 INTEREST IN POSSESSION TRUSTS FURTHER ASPECTS
CHAPTER 13 INTEREST IN POSSESSION TRUSTS FURTHER ASPECTS In this chapter you will cover further aspects of interest in possession (IIP) trusts including: Cessation of an interest in possession; Valuing
More informationTAXATION OF TRUSTS TRUSTS AND PROBATE MANAGERS SESSION M5 CONFERENCE
Background TAXATION OF TRUSTS TRUSTS AND PROBATE MANAGERS SESSION M5 CONFERENCE Since 2012 HMRC have undertaken an initiative to change the way that inheritance tax is calculated in relation to Relevant
More informationREVOCABLE INTERESTS IN POSSESSION: SOME FURTHER THOUGHTS. Address: Broom Farm, Chedgrave, Norwich, NR14 6BQ.
REVOCABLE INTERESTS IN POSSESSION: SOME FURTHER THOUGHTS Matthew Hutton Address: Broom Farm, Chedgrave, Norwich, NR14 6BQ. Email : mhutton@paston.co.uk (1995) 4 P.T.P.R. 55 Alan Pink s thought-provoking
More informationLEVEL 6 - UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS - JANUARY 2012
Note to Candidates and Tutors: LEVEL 6 - UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS - JANUARY 2012 The purpose of the suggested answers is to provide students and tutors with guidance as to the key points
More informationLEVEL 6 UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS JANUARY 2015
Note to Candidates and Tutors: LEVEL 6 UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS JANUARY 2015 The purpose of the suggested answers is to provide students and tutors with guidance as to the key points
More informationDISCOUNTED GIFT & INCOME TRUST CREATING FIXED TRUST INTERESTS
DISCOUNTED GIFT & INCOME TRUST CREATING FIXED TRUST INTERESTS PAGE 1 THE DISCOUNTED GIFT & INCOME TRUST (CREATING FIXED TRUST INTERESTS) EXPLAINED THE INHERITANCE TAX ISSUE PAGE 2 HOW THE TRUST WORKS PAGE
More informationBUSINESS PROTECTION LEGAL & GENERAL S BUSINESS PROPERTY WILL TRUST SOLUTION.
BUSINESS PROTECTION LEGAL & GENERAL S BUSINESS PROPERTY WILL TRUST SOLUTION. 2 BUSINESS PROTECTION CONTENTS INHERITANCE TAX PLANNING WITH BUSINESS PROPERTY WITHOUT WILL TRUST PLANNING WITH WILL TRUST PLANNING
More informationBRIEFING. Variation of Wills and other Post-Death Arrangements
Variation of Wills and other Post-Death Arrangements The function of a will is to ensure that the testator s property, on hand at death, passes to the chosen beneficiaries, whether absolutely or in trust.
More informationPROTECTION GIFT TRUSTS SURVIVOR S DISCRETIONARY TRUST PACK.
PROTECTION GIFT TRUSTS SURVIVOR S DISCRETIONARY TRUST PACK. Technical Guide Survivor s Discretionary Trust Deed 2 PROTECTION GIFT TRUSTS SURVIVOR S DISCRETIONARY TRUST PACK INTRODUCTION. This guide has
More informationInheritance tax planning
Inheritance tax planning Introduction Substantial amounts of tax could be payable on the estates of individuals who do not plan for inheritance tax (IHT). The first 325,000 for 2012/13 is taxed at a nil-rate,
More informationA GUIDE TO INHERITANCE TAX PLANNING
A GUIDE TO INHERITANCE TAX PLANNING 02 A guide to Inheritance Tax planning CONTENTS Page What is Inheritance Tax (IHT)?...3 What happens if the nil rate band isn t used...3 Included in your estate...4
More informationA GUIDE TO WILLS AND PROBATE
A GUIDE TO WILLS AND PROBATE A GUIDE TO Wills & Probate the Aim of this book is to guide you through the importance of making a will, the rules of intestacy and how to deal with obtaining a grant of probate.
More informationTRUSTS AND INHERITANCE TAX THE IMPACT OF FINANCE ACT 2006
TRUSTS AND INHERITANCE TAX THE IMPACT OF FINANCE ACT 2006 While the 2006 Finance Act incorporates many of the proposals set out in March s Budget in respect of inheritance tax (IHT) without significant
More informationAF1/J02 Part 4: Taxation of Trusts (3)
AF1/J02 Part 4: Taxation of Trusts (3) This final part of taxation will cover the IHT treatment of trusts. The milestones are to understand: Which trusts are subject to the relevant property regime and
More informationCross-Border Inheritance Issues
BRIEFING NOTE June 2015 Cross-Border Inheritance Issues Background English laws of succession may apply to certain types of asset situated in other countries. Foreign laws of succession may apply to certain
More informationRelief for gifts and similar transactions
Helpsheet 295 Tax year 6 April 2011 to 5 April 2012 Relief for gifts and similar transactions A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0845 9000 444
More informationWills and Living Trusts: Planning Considerations Gifts Provided through Estates
Wills and Living Trusts: Planning Considerations Gifts Provided through Estates Many members and friends have provided for support of The First Church of Christ, Scientist through a will or living trust.
More informationRESIDENCE NIL-RATE BAND: TAPERING, TRANSFERABILITY AND TRUSTS
TECHTALK This article originally appeared in OCT 17 edition of techtalk. Please visit www.scottishwidows.co.uk/techtalk for the latest issue. RESIDENCE NIL-RATE BAND: TAPERING, TRANSFERABILITY AND TRUSTS
More informationPROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK.
PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. Technical Guide Flexible Trust Deed 2 PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK INTRODUCTION This guide has been written to explain what a Flexible Trust is,
More informationCHAPTER 1 INTRODUCTION TO TRUSTS
CHAPTER 1 INTRODUCTION TO TRUSTS In this chapter you will look at the definition of a trust covering in particular: What a trust is; What the terms settlor, trustee and beneficiary mean; The reasons for
More informationWho should complete the Trusts etc. pages. Income not to be entered on the Trusts etc. pages. Income from trusts and settlements
Trusts etc. notes Tax year 6 April 2010 to 5 April 2011 A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0845 9000 444 the SA Orderline on 0845 9000 404 for
More informationAF5 Training Material Inheritance Tax
AF5 Training Material Inheritance Tax AF5 Technical Paper - Inheritance Tax (IHT) Potential exam marks available based on previous experience - 15-20% Inheritance Tax If past experience is anything to
More informationGuardians. Assets. Estate. Beneficiary. Executor. Tax. Attorney. Trusts. Wills. Probate
Guardians Estate Assets Executor Beneficiary Tax Trusts Attorney Wills Probate A unique partnership You will be working extremely hard providing your clients with the means to build up their wealth during
More informationThe Residence Nil-Rate Band and the Downsizing Provisions:
The Residence Nil-Rate Band and the Downsizing Provisions: March saw the start of the 2016 Finance Bill s passage through Parliament. Mired in controversy within hours of the Chancellor sitting down after
More informationThe tax aspects of administering an estate after death
The tax aspects of administering an estate after death Introduction Administering an estate after someone has died is a lengthy, detailed and technical task. Solicitors receive more complaints about the
More informationThere can be more than one valuation date in respect of a single estate.
CAT Valuation Date The valuation date is central to CAT as it determines the date on which the benefit is valued, and the date on which the tax is due. The rules regarding when a valuation date falls are
More informationThe essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life
The essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life interest beneficiary and it deems the capital gain arising
More informationCONTENTS CAPITAL GAINS TAX SIMPLIFICATION CAPITAL GAINS TAX SIMPLIFICATION. Introduction DOMICILE AND RESIDENCE
CONTENTS CAPITAL GAINS TAX SIMPLIFICATION DOMICILE AND RESIDENCE DEEDS OF VARIATION AFTER 8 OCTOBER 2007 CORPORATE INVESTMENT IN LIFE ASSURANCE BONDS CAPITAL GAINS TAX SIMPLIFICATION Draft legislation
More informationHelping your loved ones. Simple steps to providing for your family and friends
Helping your loved ones Simple steps to providing for your family and friends Contents 01 How can I take control of who gets what? 02 Inheritance Tax 05 Do you know how much you re worth? 07 Making lifetime
More informationPROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK.
PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK. Technical Guide Absolute Trust Deed 2 PROTECTION GIFT TRUSTS ABSOLUTE TRUST PACK INTRODUCTION This guide has been written to explain what an Absolute Trust is,
More informationThe Residence Nil Rate Band Where are we?
Tax and Private Client The Residence Nil Rate Band Where are we? A summary of the RNRB Background The Residence Nil Rate Band (RNRB) was announced in the July 2015 budget as a means of achieving the Conservative
More informationPROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK.
PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. Technical Guide Discretionary Trust Deed PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK 2 INTRODUCTION. This guide has been written to explain what a Discretionary
More informationThe Changing Landscape of IHT
The Changing Landscape of IHT 1 st November 2017 WWW.DMHSTALLARD.COM About me Senior Associate at DMH Stallard LLP, Brighton based Estate planning (pre & post death) Open University degree Society for
More informationLoan Plan. Using a Standard Life International Bond or Onshore Bond Questions and answers
Loan Plan Using a Standard Life International Bond or Onshore Bond Questions and answers Important information for the Settlor, Trustees and their adviser(s) Estate planning needn t be taxing These questions
More informationInhertitance Tax Rules, Why You Need a Will, and Domicile - A Complete Guide - Investment International
The following article is written by Andrew Coyne and aims to answer questions such as how does inheritance tax work? What does Domicile really mean? and Do I need a will? The taxman s global reach It would
More informationINHERITANCE TAX PLANNING
RESIDENCE NIL-RATE BAND & INHERITANCE TAX PLANNING WWW.WILLSTAXANDTRUSTS.COM Contents Introduction 2 The New Allowance - An Overview 3 Transferring unused allowances between spouses 4 The property 4 Direct
More informationDiscounted Gift Trust
Discounted Gift Trust pru.co.uk Contents Inheritance tax planning 3 What can the Discounted Gift Trust do for you? 4 Choice of trusts and inheritance tax 5 How does the trust work? 7 Income tax 9 How to
More informationWho should complete the Trusts etc. pages. Income not to be entered on the Trusts etc. pages
Trusts etc. notes Tax year 6 April 2012 to 5 April 2013 A Contacts To download the form and related helpsheets hmrc.gov.uk/sa107 For further information about Self Assessment hmrc.gov.uk/sa or hmrc.gov.uk/sacontactus
More informationIHT reliefs and exemptions. 14 November Anthony Nixon. Partner Page 1 Irving Mitchell Private Wealth
IHT reliefs and exemptions 14 November 2017 Anthony Nixon Partner Page 1 Irving Mitchell Private Wealth What I aim to cover today What reliefs are available on lifetime and on death? Residence nil-rate
More informationA Guide to Inheritance Tax & Estate Planning
A Guide to Inheritance Tax & Estate Planning Understand the importance of putting your affairs in order Understand how Inheritance Tax works. Understand the different opportunities available to you to
More informationCOCKBURN LUCAS INDEPENDENT FINANCIAL CONSULTING
COCKBURN LUCAS INDEPENDENT FINANCIAL CONSULTING Guide to Inheritance Tax Contents This guide provides general guidance only and should not be relied on for major decisions on property or tax. You should
More informationClient Personalised Document Commentary Package
Client Personalised Document Commentary Package What is the Client Personalised Document Commentary? The Client Personalised Document Commentary contains detailed information on all of your Client s Executors,
More informationInternational Portfolio Bond Discretionary Will Trust for married couples or registered civil partners
International Portfolio Bond Discretionary Will Trust for married couples or registered civil partners This draft Discretionary Will Trust is provided as specimen wording for possible inclusion within
More informationThe Chartered Tax Adviser Examination
The Chartered Tax Adviser Examination November 2017 Suggested solutions Application and Interaction Question 1 - Individuals, Trusts and Estates Application and Interaction November 2017 Question 1 (Individuals,
More informationClient: Instructions for a Will. Date. Ref: 1. Will maker/testator. (a) Full Name:
Client: Re: Instructions for a Will Date Ref: 1. Will maker/testator (a) Full Name: (b) Details of any other names in which assets appear: (c) Normal residential address (for drafting into the Will) and
More informationA guide to INHERITANCE TAX
A guide to INHERITANCE TAX Contents Introduction...3 What exactly is inheritance tax?...4 How much inheritance tax will my estate have to pay?...5 Key IHT allowances, reliefs and exemptions...6 Simple
More informationThe Chartered Tax Adviser Examination
MODULE B Candidate Number DO NOT WRITE 1 st IN PROOF THIS AREA The Chartered Tax Adviser Examination 2 May 2018 AWARENESS (Ensure this number matches your candidate number on your desk label and on your
More informationThe Residence Nil Rate Band de-mystified
The Residence Nil Rate Band de-mystified The Paraplanners Powwow Presented by Carol Wells Head of Wills, Trusts and Estate Planning - Abbey Tax 26th July 2017 Residence nil rate band in a nutshell Content
More informationTax Planning for the New Tax Year 5th April 2015
ROBINSONS Chartered Accountants 5 Underwood Street, London N1 7LY Tel: Email: Website: 020 7684 0707 Follow us on Twitter: @robinsonslondon Tax Planning for the New Tax Year 5th April 2015 (Your guide
More informationPROBATE and ESTATE ADMINISTRATION Price and Service Information. Further information about the team, including biographies, can be viewed here:
HUNTERS INCORPORATING MAY, MAY & MERRIMANS 9 NEW SQUARE, LINCOLN S INN, LONDON WC2A 3QN TELEPHONE: 020 7412 0050 FAX: 020 7412 0049 E-MAIL:info@hunters-solicitors.co.uk DX: 61 LONDON/CHANCERY LANE PROBATE
More informationFind out more. Calls may be recorded. Minicom and Saturday 9am-1pm. Lines open Monday to Friday 8am-6pm.
The Royal Bank of Scotland plc. Registered in Scotland. No. 83026. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. RBS EAS001 30 April 2018 Find out more Discover how the Royal Bank Estate Administration
More informationGift Planning Glossary of Terms
Gift Planning Glossary of Terms Annual Exclusion The amount of property (presently $14,000 or $28,000 for a married couple in 2013) that may annually be given to a donee, regardless of the donee s relationship
More informationDiscretionary Discounted Gift Trust. Adviser s Guide
Discretionary Discounted Gift Trust Adviser s Guide Adviser s Guide to the Discretionary Discounted Gift Trust This guide is for use by Financial Advisers only. It is not intended for onward transmission
More informationInheritance tax, part 1
RELEVANT TO ACCA QUALIFICATION PAPER F6 (UK) AND PERFORMANCE OBJECTIVES 19 AND 20 Inheritance tax, part 1 The Paper F6 (UK) syllabus requires a basic understanding of inheritance tax (IHT), and this two-part
More informationCHAPTER 11 OTHER TRUSTS FOR CHILDREN
CHAPTER 11 OTHER TRUSTS FOR CHILDREN In this chapter you will learn about trusts for children after 22 March 2006 including: The definition of trusts for bereaved minors and Age 18-to-25 trusts; The inheritance
More informationCredit shelter trusts and portability
Credit shelter trusts and portability Comparing strategies to help manage estate taxes Married couples have two strategies to choose from to help protect their families from estate taxes. Choosing the
More informationRESIDENCE NIL-RATE BAND. James Kessler QC and Mary Ashley
1.1 Introduction RESIDENCE NIL-RATE BAND James Kessler QC and Mary Ashley The rules are in the 18 sections, numbered non-numerically, from s.8a to 8M IHTA. The development of the rules can be traced in
More informationA Primer on Wills. Will Basics. Dispositive Provisions
A Primer on Wills BY LYNNE S. HILOWITZ Following are some basic definitions and explanations of concepts and terms commonly used in planning and drafting wills as part of a client s complete estate plan.
More informationWILLS. a. If you die without a will you forfeit your right to determine the distribution of your probate estate.
WILLS 1. Do you need a will? a. If you die without a will you forfeit your right to determine the distribution of your probate estate. b. The State of Arkansas decides by statute how your estate is distributed.
More informationA guide to inheritance tax (IHT)
A guide to inheritance tax (IHT) Important notice This guide has been designed to provide general information about inheritance tax ( IHT ) and should not be regarded as investment or taxation advice.
More informationAF1 IHT Part 3: Residential Nil Rate Band
AF1 IHT Part 3: Residential Nil Rate Band The milestones for this part are to understand: What is RNRB and what are the conditions for claiming it. How to apply RNRB in a calculation. How unused RNRB can
More informationf o r F i n a n c i a l a dv i s e r s
STATE LAN ING ND A summary f o r F i n a n c i a l a dv i s e r s For financial adviser use only. Not to be distributed to, or relied upon by, retail clients. Utmost Wealth Solutions is the brand name
More informationHelping you understand inheritance tax planning
Helping you understand inheritance tax planning As Benjamin Franklin said, In this world nothing is certain but death and taxes. Inheritance tax (IHT) is where the two meet up. It is a tax on what you
More informationInheritance Tax - a Summary
Inheritance Tax - a Summary Inheritance tax (IHT) is levied on a person s estate when they die, and certain gifts made during an individual s lifetime. Most gifts made more than seven years before death
More informationAn Introduction to Trusts. Abbey +
An Introduction to Trusts Abbey + Introduction to Carol Wells Chartered Tax Adviser Background in accountancy firms and last 13 years with Irwin Mitchell Solicitors Joined Abbey Tax in January 2017 Specialise
More informationFinancial planning. A guide to estate planning
Financial planning A guide to estate planning The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance should not
More informationSuccession Planning Bond Trust Guide
Succession Planning Bond Trust Guide contents Introduction... 3 Inheritance Tax... 4 Domicile... 6 Reducing the effect of IHT................................ 8 Transferring assets/gifting.............................
More informationLEVEL 6 - UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS - JUNE 2011
Note to Candidates and Tutors: LEVEL 6 - UNIT 21 PROBATE PRACTICE SUGGESTED ANSWERS - JUNE 2011 The purpose of the suggested answers is to provide students and tutors with guidance as to the key points
More informationIf you would like you can also add a picture of the church or church activity of your choice.
Please enter the name of your church and location on this page. If you would like you can also add a picture of the church or church activity of your choice. 1 2 Many people have not really thought about
More informationAdviser guide The Discretionary Gift Trust
This document is for investment professionals only and should not be relied upon by private investors. Adviser guide The Discretionary Gift Trust FundsNetwork Trusts Contents 1 The FundsNetwork Discretionary
More informationSPOTLIGHT ON: PENSIONS AND INHERITANCE TAX
SPOTLIGHT ON: PENSIONS AND INHERITANCE TAX PENSIONS AND INHERITANCE TAX THE FUNDS HELD WITHIN A PENSION ARE USUALLY EXCLUDED FROM THE SCHEME MEMBER S INHERITANCE TAX (IHT) ESTATE. THIS IS AN INTENDED CONSEQUENCE
More informationDiscounted Gift Plan. Using a Standard Life International Bond or Onshore Bond Questions and answers
Discounted Gift Plan Using a Standard Life International Bond or Onshore Bond Questions and answers Important information for the Settlor, Trustees and their adviser(s) Estate planning needn t be taxing
More informationl your guide To THe LoAN TruST an trust
an rust your guide TO THE LOAN TruS T Utmost Wealth Solutions is the brand name used by a number of Utmost companies. This item is issued by Utmost Limited and Utmost Ireland dac. 3 BEFORE YOU BEGIN 4
More informationAegon pilot trust a guide
For financial advisers only Aegon pilot trust a guide This communication is for financial advisers only. It mustn t be distributed to, or relied on by, customers. The information contained in it reflects
More informationSurvivor s Discretionary Trust deed
Protection Gift Trusts Survivor s Discretionary Trust deed Checklist Before sending the Trust to Legal & General, have you... 1. Inserted the policy number (if known) in the box below 2. Dated the Trust?
More informationLeaving a will: your essential guide
Leaving a will: your essential guide mcf.org.uk Contents Section 1 Create your will 1 Have you thought about your legacy? 2 Why it s important to leave a will 4 How to leave a legacy 5 Choosing your beneficiaries
More informationNotes on TRUST AND ESTATE CAPITAL GAINS
Filling in the Trust and Estate Capital Gains pages TCN2 Disposals by trusts/settlements with separate funds TCN2 Section 1 General: filling in pages TC1 to TC8 Definition of listed shares or other securities
More informationFor Adviser use only Not approved for use with clients. Estate Planning
For Adviser use only Not approved for use with clients Adviser Guide Estate Planning Contents Inheritance tax: Facts and figures 4 Summary of IHT rules 5 Choosing a trust 8 Prudence Inheritance Bond (Discounted
More informationReducing Your Inheritance Tax: What can you do, and how do you do it?
Reducing Your Inheritance Tax: What can you do, and how do you do it? Most people want their money and possessions to go to their friends, family, or good causes. Inheritance tax may not affect you personally
More informationInheritance Tax: the correct strategy for your estate...and your family. By Colin Yule
Inheritance Tax: the correct strategy for your estate...and your family By Colin Yule 1 The right of Colin Yule to be identified as the author of the ensuing work has been asserted by him in accordance
More informationguide to your Old Mutual International
guide to your Old Mutual International Trust Company Enhanced Loan Trust investments pensions the Old Mutual International Trust Company Enhanced Loan Trust More and more people are finding themselves
More informationBY-PASS TRUST FOR USE WITH DEATH BENEFITS UNDER A LONDON & COLONIAL SIPP CLIENT GUIDE (April 2011)
CONTENTS BY-PASS TRUST FOR USE WITH DEATH BENEFITS UNDER A LONDON & COLONIAL SIPP CLIENT GUIDE (April 2011) 1. INTRODUCTION SIPPs AND INHERITANCE TAX 2. DEATH BENEFITS THAT CAN BE PAID UNDER THE LONDON
More informationREFERENCE GUIDE Charitable Giving
REFERENCE GUIDE Charitable Giving Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided
More informationBusiness Protection. Guide to Business Succession for Partnerships
Business Protection Guide to Business Succession for Partnerships For intermediary use only not for use with your clients This technical guide details the need for business succession planning for partnerships,
More informationSection 11 Probate Glossary
Section 11 Probate Glossary 2012 Investors Empowerment Academy, LLC 119 Abatement A proportional diminution or reduction of the pecuniary legacies, when there are not sufficient funds to pay them in full.
More information1. Fixed Fee - Obtaining the Grant only Applying for a Grant, collecting in and distributing assets Example Estate quote 7-8
Fees for probate 1 1. Fixed Fee - Obtaining the Grant only 3-5 2. Applying for a Grant, collecting in and distributing assets 6 3. Example Estate quote 7-8 4. Additional work required where an Estate is
More informationPassing on your wealth to your loved ones
Trust guide Passing on your wealth to your loved ones Having arrangements in place to protect your family is very important. Taking out life insurance is one part of the financial planning process. You
More informationA GUIDE TO. PrOTECTING wealth. FOr GENErATIONs
FINANCIAL GUIDE A GUIDE TO ESTATE PRESERVATION PrOTECTING wealth FOr GENErATIONs Pennymatters Ltd is authorised and regulated by the Financial Conduct Authority. It is entered on the FCA register (www.fca.org.uk)
More informationMay 2017 Examination
May 2017 Examination PAPER 5 Inheritance Tax, Trusts & Estates Part II Suggested Answers 1. 1) Exit charge Effective rate of tax at previous 10 year anniversary 14.15% NB No change in nil rate band since
More informationFlexible Trust - Settlor as trustee with optional survivorship clause. Your questions answered
Flexible Trust - Settlor as trustee with optional survivorship clause Flexible Trust - Settlor as trustee with optional survivorship clause Understanding trusts and their implications can be pretty complicated.
More informationHints Will Questionnaire
Hints Will Questionnaire H1. What is the Trustee/Executor? A Will needs to nominate a person or persons who will administer your estate when you die. This person is known as the Trustee or the Executor.
More informationTrust Referencer. Focused Report. for. A life interest arising in a Will. Report includes the following sections
Trust Referencer Focused Report for A life interest arising in a Will Report includes the following sections Outline Inheritance Tax Capital Gains Tax Income Tax This Trust Referencer Report was created
More informationFinance Bill 2016, clause 82 Inheritance Tax: Increased Nil Rate Band (Downsizing)
Ref: ST 8 June 2016 Via email only: danka.wigley@hmrc.gsi.gov.uk Dear Danka Finance Bill 2016, clause 82 Inheritance Tax: Increased Nil Rate Band (Downsizing) Policy Objective Paragraph 1.53 of the 16
More informationGuidance. For use in England, Wales and Northern Ireland only. Comprehensive will for an unmarried person. Contents.
Guidance For use in England, Wales and Northern Ireland only Comprehensive will for an unmarried person Contents Glossary of terms Property ownership Pensions and life assurance policies EU Succession
More informationSCOTTISH WIDOWS BUSINESS PROPERTY WILL TRUST ADVISER GUIDE
SCOTTISH WIDOWS BUSINESS PROPERTY WILL TRUST ADVISER GUIDE This information is for UK Financial Adviser use only and should not be distributed to or relied upon by any other person. PAGE 2 SECTION A WHY
More information