Tax Planning and Financial Products

It is becoming increasingly likely that you will need to consider inheritance tax in your overall financial planning. We are able to work with your financial adviser to inform you of the current rules regarding inheritance tax, to optimise the possibilities open to you and to ensure that the legal paperwork produced meets your requirements.

Certain financial products can assist in removing capital from your estate whilst providing you with an income. These products can form part of the overall inheritance tax planning strategy for you and your family and include investing in companies which qualify for business property relief and discounted gift trusts.

Discounted gift trusts

A discounted gift trust is designed for people who do not need access to their capital and wish to retain the right to draw a regular income. Once set up it allows a percentage of cash to be outside your estate and not liable to inheritance tax on your death.

The percentage will depend on your age, sex and health as well as the size of the capital withdrawals. The balance will become fully exempt from inheritance tax once you have survived a further seven years from the date of the gift.

Life assurance

Life assurance may help those you leave behind to pay the inheritance tax, although life assurance cannot negate the tax due. This type of policy will pay out the cash to pay the tax as soon as it is due. Not only does this save your family from the financial worry and stress of having to find the money themselves it also enables probate (which can take some time) not to be further delayed.

It is, however, important to ensure that the insurance policy is written into trust otherwise the policy proceeds may be counted towards the value of your estate. Our experts can assist you with drafting the appropriate trust documentation and advising you of its suitability.

Working with you and your family we will advise on:

  • All aspects of life assurance trusts
  • All aspects of discounted gift trusts
  • Maximising business property relief by investing in the alternative investment market

To discuss your tax planning and finance product requirements with one of our experienced solicitors, call us today on 0800 2800 421.

Meet the team

James Hammersley

Partner
Poole

Mihiri Gajraj

Partner
Southampton

Chris Pemberton

Partner
Salisbury

Richard Dollimore

Partner
Poole

Gary Pick

Partner
Poole

Rupert Thompson

Senior Associate
Winchester

Claire Radigois

Senior Associate
Salisbury

Martha Swann

Associate
Poole

Holly Algar

Associate
Southampton

Derek Bryer

Associate
Salisbury

Arcadius Gregory

Solicitor
Southampton

Jenny Shucksmith

Chartered Legal Executive
Salisbury

Paula Arnold

Trusts and Tax Practitioner
Poole

Karen Dalton

Tax Assistant
Poole

Helen Glatter

Chartered Accountant
Poole

Philip Savage

Paralegal
Southampton