Thomas & Elizabeth, retired

Inheritance Tax planning clients

Background

Thomas and Elizabeth, in their early 80s, were aware that the value of their assets was such that Inheritance Tax would be due when they both died. They wanted to ensure they could pass on assets to their three children in the most efficient manner.

Both enjoyed secure state pensions and some other pensions, which covered most of their expenditure, but their house and other investments pushed their assets above the available allowances.

Having recently sold a piece of land, which had been in their family for generations, they wanted to consider the options available to them. While their three children were all married, financially independent and had their own families, they were keen to be able to gift funds to benefit them during their lifetimes.

Our approach

We agreed to prepare a review of their Inheritance Tax position and ensure all available allowances were considered. We also provided a range of solutions for them highlighting the advantages and disadvantage of each.

The outcome

Thomas and Elizabeth had a full understanding of the various allowances which applied and the impact of making gifts. Armed with that information and the options, they were able to make direct gifts to their three children, with a potential saving of £60,000 in Inheritance Tax if they survived 7 years from making the gifts. Most importantly for them, they could enjoy seeing their children benefit from the funds in their lifetime, which is what they’d always wanted.

They’re now able to do what they’d always wanted: see their children benefit during their lifetimes

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