Onside Issue 5 - 39

In recent years we have also seen growth in the popularity of investment
solutions that use BPR as a means of planning for IHT. Such solutions allow
individuals to plan for IHT whilst retaining control and access to their
investment and provided that the BPR qualifying investments are held for 2
years prior to death, they enjoy 100% relief from IHT. Seneca Partners offer
a solution in this area via the Seneca IHT Portfolio Service.

What are some of the key
issues to consider when
planning for the future?
Wealth management is usually first
and foremost on people's minds
when they are planning for later life
and looking to safeguard wealth for
the next generation.
Advice will need to be taken on the
best way to maximise the value
of an estate when wealth is being
transferred, such as looking at any
business assets or dealing with
complex financial matters.
But don't forget that there are
other important factors to take
into account, from taking advice
on a Will or dealing with estate
planning. Dying without a Will can
leave remaining family members
in a difficult situation, with the
law determining how an estate is
distributed, rather than a person's
wishes.
Trusts can be a very valuable tool
at this stage, too, for example
ring-fencing assets for minors or
vulnerable beneficiaries.
Technically, next of kin have no
legal entitlement to deal with the
affairs of a family member - only a
legally appointed attorney or court
appointed deputy can do so.

What do I need to know about
inheritance tax and how can I
plan to properly minimise its
effects?
With the Government having
announced that the standard
Inheritance Tax (IHT) nil rate
band, available to any individual,
will remain at £325,000 until at least
April 2019 and with the forthcoming
additional residence nil rate band
due to begin being phased in on
April 6 2017, IHT planning is once
again back on the agenda.
The cornerstone of IHT planning
is to ensure that a tax efficient Will
is in place. Ensuring that a Will is
appropriately structured can have a
very signific ant effec t on the amount
of IHT payable. Thereafter, IHT
planning is largely about lifetime
giving and IHT-friendly investing.
In terms of giving, there are a
number of lifetime exemptions
available, and subject to those,
a lifetime gift made direct to an
individual will be exempt from IHT
providing the donor survives for
seven years, though the rules are
more complex when making gifts
into trust.

ONSIDE WINTER 2016 |

Another useful strategy is to ensure
that any life insurance cover, death
in service benefits and pension
funds are dealt with in a tax
efficient way. The most flexible and
IHT efficient way of dealing with
life insurance and death in service
benefits is to direct any payouts
into a discretionary trust for the
benefit of the deceased's intended
beneficiaries.

39



Table of Contents for the Digital Edition of Onside Issue 5

Contents
Onside Issue 5 - Cover1
Onside Issue 5 - 2
Onside Issue 5 - Contents
Onside Issue 5 - 4
Onside Issue 5 - 5
Onside Issue 5 - 6
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Onside Issue 5 - Cover3
Onside Issue 5 - Cover4
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