while life assurance is not the answer to all IHT ills, with the finance act limiting the amount of gifts to trust, it is an option
An unavoidable outcome of the 2006 Finance Act is that those who wish to carry out some form of gift-based planning, while maintaining flexibility of control of beneficiaries, will face an inevitable cap on the amount they can gift to trust. Whether a gift trust or a discounted gift trust (DGT), any gift in excess of the nil rate band will attract an immediate charge to inheritance tax (IHT) at 20%. What then for those whose planning aspirations extend beyond the use of a nil rate band every seven years but for whom a straightforward gift or an absolute trust is a bridge too far? Might we...
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