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Future-proofing your legacy planning

Session: 1 October 2021

The latest statistics on Inheritance Tax (IHT) show that cash comprises just under a quarter of the assets held by taxpaying estates.

With over 96% of taxpaying estates holding cash and an expected £5.5 trillion of assets expected to pass down the generations in the next two decades, this is a wonderful opportunity for advisers to get involved in future-proofing clients’ wealth.

That is, getting your wealth to the right people at the right time with an acceptable amount of tax.

On this seminar, Les Cameron – Head of Technical, looked at the key building blocks of an IHT strategy and where standard insurance company trusts fit in.  He was joined by Technical Managers Graeme Robb, Neil MacLeod and Barrie Dawson who’ll represent and put the case forward for a gift trust, a loan trust and a discounted gift trust, explaining why their trust should be getting the money from three different case studies.

Learning Outcome – to demonstrate an understanding of:

  • The key building blocks of an IHT strategy
  • Planning considerations when using standard insurance company trusts in your clients’ IHT planning 
Featured Video

Future-proofing your legacy planning

93 minutes

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. How do you set up a loan trust?

a. The client sets up the trust, purchases a bond and then lends that bond to the trustees 

b. The client purchases a bond, then lends it to the trustees who then set up a trust 

c. The client sets up the trusts, lends money to the trustees who then purchase a bond

d. The client receives a loan from the trustees and uses that to purchase a bond

 

2. Which of the following statements about Discounted Gift Trusts (DGTs) is true?  

a. Income from a DGT can be gifted using the normal expenditure out of income exemption 

b. The level of payments don’t reduce on first death for joint settlor DGTs 

c. Withdrawals to meet ongoing adviser charges increase the discount 

d. It’s not possible to set up a DGT for a settlor who’s already attained age 90

 

3. Which of the following statements about Gift Trusts is false? 

a. The settlor is excluded as being a beneficiary of the trust  

b. You can use an existing bond to set up a gift trust 

c. A gift into an absolute gift trust is a potentially exempt transfer

d. Distributions to beneficiaries can only be made after 7 years 

 

To claim your CPD certificate, click here.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.