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Inheritance Tax Planning with Bluebond
United Kingdom
Приєднався 8 лип 2016
We have been providing specialist Estate planning and Inheritance tax (IHT) advice for more than 18 years. The aim of this channel is to help you to understand how Inheritance tax works and what you can do to resolve your inheritance tax problems.
The videos are only aimed at people who are domiciled in the UK or foreign nationals who have lived in the UK for 15 years.
I hope you find the content useful.
Charles de Lastic
The videos are only aimed at people who are domiciled in the UK or foreign nationals who have lived in the UK for 15 years.
I hope you find the content useful.
Charles de Lastic
How will an IPDI save inheritance tax.mp4
Today's video covers what an Immediate Post-Death Interest (IPDI) Trust is and how it helps families save on inheritance tax.
An IPDI Trust is created upon death and qualifies as an interest in possession trust. Established by a will or under intestacy laws, the life tenant has an immediate right to income from the trust's assets or can use the assets, like living in a residence. The entitlement may last for the beneficiary's lifetime or for a fixed term, ending under specific conditions like death or remarriage.
The trust property in an IPDI is considered part of the life tenant's estate for inheritance tax purposes.
Watch to learn more about how an IPDI Trust can benefit your family and help save on inheritance tax.
#TaxPlanning #WealthManagement #InheritanceTax #FinancialAdvice #EstatePlanning #IPDITrusts
An IPDI Trust is created upon death and qualifies as an interest in possession trust. Established by a will or under intestacy laws, the life tenant has an immediate right to income from the trust's assets or can use the assets, like living in a residence. The entitlement may last for the beneficiary's lifetime or for a fixed term, ending under specific conditions like death or remarriage.
The trust property in an IPDI is considered part of the life tenant's estate for inheritance tax purposes.
Watch to learn more about how an IPDI Trust can benefit your family and help save on inheritance tax.
#TaxPlanning #WealthManagement #InheritanceTax #FinancialAdvice #EstatePlanning #IPDITrusts
Переглядів: 153
Відео
If we lend money to adult children from a trust, is it tax-free?
Переглядів 13421 день тому
Is a loan from a trust tax free? The answer to that question depends on the type of trust - most flexible reversionary trusts do not allow loans, but you can make gifts out of the trust which are subject to income tax on the actual beneficiary. We have been providing specialist Estate planning and Inheritance tax (IHT) advice for more than 18 years. The aim of this channel is to help you to und...
How does HMRC know the value of my estate when I die
Переглядів 2192 місяці тому
Inheritance Tax Planning: Avoiding False Declarations and Legal Troubles In this video, we discuss the critical steps and considerations for avoiding false declarations when dealing with inheritance tax. Key points include: - The role of a professional agent or solicitor in assessing asset values and gifts - The importance of declaring the true value of assets and gifts to HMRC - The legal cons...
Will I have to pay UK inheritance tax if I live abroad
Переглядів 2635 місяців тому
Will I have to pay UK inheritance tax if I live abroad
Why landlords need to wait three years to set up a Family investment company
Переглядів 4587 місяців тому
Why landlords need to wait three years to set up a Family investment company
What types of life insurance should you use for inheritance tax planning
Переглядів 6118 місяців тому
What types of life insurance should you use for inheritance tax planning
What mistakes are made when insurance is used to pay inheritance tax
Переглядів 2188 місяців тому
What mistakes are made when insurance is used to pay inheritance tax
6 easy steps to avoid your inheritance tax liability
Переглядів 7219 місяців тому
6 easy steps to avoid your inheritance tax liability
When a property portfolio is transferred to a limited company, what factors must be considered?
Переглядів 38610 місяців тому
When a property portfolio is transferred to a limited company, what factors must be considered?
What happens to our planning if there are changes by the government in the future?
Переглядів 1 тис.10 місяців тому
What happens to our planning if there are changes by the government in the future?
Should I use a disabled person's trust or a discretionary trust?
Переглядів 43611 місяців тому
Should I use a disabled person's trust or a discretionary trust?
What happens about inheritance tax if a couple die together in an accident?
Переглядів 3,5 тис.11 місяців тому
What happens about inheritance tax if a couple die together in an accident?
Should I use a discretionary trust or an Employee Benefit trust to hold my company shares?
Переглядів 32211 місяців тому
Should I use a discretionary trust or an Employee Benefit trust to hold my company shares?
How is inheritance tax worked out if you own assets in other countries?
Переглядів 1,8 тис.11 місяців тому
How is inheritance tax worked out if you own assets in other countries?
How to set up a trust if your beneficiaries live abroad?
Переглядів 109Рік тому
How to set up a trust if your beneficiaries live abroad?
Can a trust lend money to buy a property?
Переглядів 307Рік тому
Can a trust lend money to buy a property?
Why use a Family investment company to avoid inheritance tax
Переглядів 697Рік тому
Why use a Family investment company to avoid inheritance tax
Why use a Family Investment Company for an investment portfolio?
Переглядів 593Рік тому
Why use a Family Investment Company for an investment portfolio?
How to build a tax effective property portfolio?
Переглядів 356Рік тому
How to build a tax effective property portfolio?
Is a Flexible Reversionary Trust taxed the same as a normal discretionary trust?
Переглядів 245Рік тому
Is a Flexible Reversionary Trust taxed the same as a normal discretionary trust?
How to protect your second home in Europe from IHT?
Переглядів 177Рік тому
How to protect your second home in Europe from IHT?
How to deal with mortgages in a Family Investment Company?
Переглядів 784Рік тому
How to deal with mortgages in a Family Investment Company?
How landlords can set up a Family Investment Company and an Employee Benefit Trust
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How landlords can set up a Family Investment Company and an Employee Benefit Trust
How to change an existing company to a Family Investment Company?
Переглядів 540Рік тому
How to change an existing company to a Family Investment Company?
Unborn children and grandchildren can become trust beneficiaries.
Переглядів 297Рік тому
Unborn children and grandchildren can become trust beneficiaries.
How do I choose an independent trustee?
Переглядів 134Рік тому
How do I choose an independent trustee?
How do you place investments into a Family Investment Company?
Переглядів 1,4 тис.Рік тому
How do you place investments into a Family Investment Company?
What is the best way to set up a trust for grandchildren?
Переглядів 380Рік тому
What is the best way to set up a trust for grandchildren?
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very informative charles 👍
thanks for this. so basically, if we decide to leave the uk best to close bank accounts and sell all you got and renounce the uk passport.
Yes you have to cut all ties with the UK but hold fire for a while as there is talk of changing IHT to being residency based and not domiclie based and so if you leave for over 5 years you may be ok but the decision on this has not yet been made
is there a trust suitable for digital assets such as bitcoin?
In principle a Trust can hold bitcoin but it generates a lot of legal complications and so we would not advise you do it
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so as long as you have a uk passport you are taxed for iht?
Yes as long as you have any ties to the UK but the passport is a big tie
very informative. thanks Charles
Hi - glad you find our videos helpful
what's the right way to avoid iht for between 1m and 2m
Hi _ There is no right way - there is only the right way for you. Everyone has different circumstances and will make different decisions - Get advice - formulate a detailed plan for everything to do with your finances and IHT mitigation is part of that plan and then implement the plan - this is right and most effective soloution.
@@Inheritancetaxadvice to put it another way why do you say FIC is for more than 2m? already paid a lot to someone who had no ideas, talking about 1 house and 1 btl both worth about the same
@@whitewittock Hi We cannot get into a full dialog on this platform - I would respectfully suggest you attend one of our free Saturday webinars and get all your questions answered properly
What are the tax implications of this though. Like is CGT payable on transfer?
Best bet - go oto our website where the FIC videos are all organised and watch some of them to understand but you should pay no CGT
Great presentation. I understand things a lot more clearly now. Better than a lot of the social wham bam short videos. Thank you
Thanks for your commments - there plently more videos like this on our channel
Thans for this
Thank you for this
Short and precise..thanks
charls can you make a video about crypto into trusts ? deep dive into TRUST and Crypto
Hi Yes thats seems like a good idea - will look at it but will take a while
Can you still buy property with a mortgage in a property investment company
Yes you can and these days most professional landlords control their property portfolios via Ltd companies. An FIC is simply a LTd company with tailor made articles of association and shareholder agreements
very interesting , thanks
Are the new 10 year non dom rules to be applied retrospectively? As in, if we leave now, will the 10 year rule apply anyway?
They start from April 2025 so yes if you leave this year they will not apply to you
I didny understand what it is and how it worked!
My 81 year old father refuses to write a will. He he has never been married. I'm his only son. He has no property but may have savings.
OK this is very unusual as if you ask him his wishes and get it drafted then all he needs to do is sign. Failing that you need to look up the intestacy rules and that is what will happen
I think once one goes over the nil rate the simplest answer is to spend it. The gifting bit isn't really that limited... I can shove a roll of cash in my kids hands and who is to say I didn't spend it myself? As long as they don't put it in a bank and just use it for buying stuff with cash (groceries etc) no worries
Maybe for small amounts but not for larger estates
Hi Charles, how do you actually transfer “properties with mortgage” from individual names to the FIC without refinancing? Pls clarify this. Thanks!
Normally an LLP is set up first and then the clients have to wait 3 years to claim incorporation relief. While waiting they rearrange thioer mortages for corporate lending
Happy Easter and thank you for your acts of kindness sharing this important information. Hope your office notifies all the English and Spanish courts.
We'll get it in the end we always do........HMRC tax inspector retired just spend it or give it away best advice and costs nothing.
Lets agree to disagree
Doubtful ...as a tax inspector the best advice and its free is ....spend it or give it away and live a further 7 years then we cant get it !! Do not trust trusts either we break them with ease !!
Bluebond should post a response to this or those of us thinking of doing this will be put off
Forget all this bull that these folk spout.......spend it or give it away its free. I know nothing else will work HMRC know all the tricks and defeat them all I know....spend it give it away and live your life !!!!
Thanks. Are there any downsides during that initial 3 year period, such as not being to claim 20% tax credit on any finance interest?
No The properties remain in your name and you can still reclaim the 20% tax credit - the only downside is that there is an additional accountancy cost to doing a tax return for the partnership but that is a small cost to pay for the protection if you set up an LLP as suggested
Thanks👍
Thanks for explaining this. Me and my wife set up a limited company, each owning half the company with equal shares and same rights. When we formed the company we selected ordinary A shares and B shares ( Me 50% A shares and her 50% B shares). We didn’t make any amendments to the model articles, we just accepted it as it was on companies house. Those this mean when paying dividends each month, would we both have to receive the same amount? Or we can decide together who receives what amount. ?
Hi Lewis - sorry but you will need to ask you accountants as this would be personal advice
great video, thank you. If setting up a company from new on with Companies house using an Ordinary A, Ordinary B share structure, can the Companies House's provided standard Model Articles of Association be used or does one have to be drafted and uploaded?
Hi Phil - yes when setting up a new company the model articles cn be downloaded. When we set up a FIC our lawyers legallychange those articles in ordr to set up multiple share classes
My mother set up a lifetime trust solely for my elder brother. When she died I handled probate and was hit by a £5000 (£350000 estate) charge by the solicitor to obtain the money in that trust. Also some of us do not have a million in assets and approaching our 80’s so surely some of these arguments don’t apply in the same way. I appreciate the points you were putting across but I would rather have seen a more even handed approach, even though it would not help your business. I have found in life it is very rarely black and white in these situations.
Thanks and I take on board your comments but are information is desigend to help people with IHT probelems and so is obvioulsy not relevanyt to everyone
As a retired tax inspector the only 2 ways to avoid IHT is ...spend it...or give it away and live 7 years after the gift.....nothing else I repeat nothing else is certain.I know.
Oh that it was that simple - a lot of differnt scenarios to consider about how you give it away and still maintain your lifestyle
It is clear that the real billionaires see the wealthy as a threat to their control on government, and so tax terrorism ( and unnecessary need for home loans etc. ) are ways to reduce that threat from the wealthy
Can you pay £1 per year rent to your trust to live in the property? Regarding capital gains tax, that needs to be paid only when you sell the property. So if you do not sell the property, you do not have to pay CGT. Am I right?
@Inheritancetaxadvice - Thank you. Sounds very unfair that Hmrc has a problem with how much rent do I have to pay to my own trust.
How much does it cost to covert the limited company to FIC and what docs are required
Hi Sorry but we cannot say as it varies dependent on the assets going into th company and the work involved but as part of your advice the fes are all disclosed in detail at the outset once we know what we are recommending to clients
If you leave your property to your kids in a trust, what is the process if they want to sell it ? Are there constraints ?
How should outright gifts of cash be recorded?
Very good explanation- thank you.
Hi thanks for the video, so we want to put our house(main residence) in to trust for our grown up sons, whats the best way? Or isnt there one at all?, ive heard a few people have done it. Thanks in advance
Dont do it - It never works unless you ar enoyt going to live in it as you have to pay full market rent to the Trust which has already been taxed and then the trust has to pay income tax and then when the proeprty is sold there will be calital gains tax - Send me an email on our website and I iwll explain it to you in more detail
Very Interesting
Really enjoy your educational videos we never had to think about this as house prices never reached this level in my life until now ! My parents never had this issue either. Always associated this with rich. Why are threshold so low in comparison ?
Hi Kaplna - Why indeed? Like many other taxes in the UK this is growing taxation on the public by simply not adjusting allowances in line with inflation. The worst example of this is the £3000 annnual allowance for gifts person which has been the same since 1981. Allowing for average inflation of 3.5% per year this figure should now be £13,0020 - a significant difference
Quick question. If all the nill rate band is used and the person dies within 7 years of a chargeable transfer do they still pay 20% or 40%.
IHT is always at 40% unless its a gift to a trust during lifetime which exceeds the allowance the trust has - this is usually £325,000 unless more than one trust has been used in a 7 year period in which case the allowance reduces by deducting the amount already gifted to a previous trust. However on death it is always 40%
Hi firstly thank you for the videos! My grand parents were very successful business partners going backin the 80s/90s . my grandfather passed away 15 years ago and my grandmother is still alive and very switched on bright woman, we got told a long time ago when I was back in my 20's at the time that they were going to leave each of the grandchildren 2million each. I don't know why they haven't gifted this amount to us years ago to avoid any sort of inheritance tax, I'm not the type to as ask questions, we have been brought up properly and that would be very cheeky to ask lol. We don't talk about it a lot within the family because we all work hard and of course the money would be a bonus if we had it, but if we didn't, it wouldn't be the end of the world. However, Getting that much money and getting taxed on the money over the £325000 would be a kick in the teeth for any man. My brother said something years ago that the money they made never came into the uk. so im assuming its abroad or in some swiss bank maybe. And i highly doubt that my Grandmother would let us pay that much IHT on that much money. All we got told was that we would have a letter when they both pass away. I'm thinking the money is abroad? Or is there any other loop holes in the IHT? Because they would never pay that much tax. We currently live in Manchester.
Lucky Fella.. Hope you get the correct advice
Differnet people do require different plans and its the time taken to deliver and explain the advice and aslo the liability for giving the advice. In most case we are protecting millions of pounds of assets and so doing it correctly takes time. Say it costs someone £10,000 but they save £200,000 in tax and protect several million of assets - is it worth it? - each person makes their own decisions. In the end all legal advice is expensive but our is just less so.
Just reading your guide and watching your vids - they are great and much appreciated thankyou! I have a simple question please... I understand that there are many, many, complex variations on peoples family situations and wishes, so it's great that you continually explain simple 'text book' family examples, because they are very common and tangible (2 parents with 2 kids that may have grand kids, blah, blah blah), up to to £1m estate etc; requiring the typical split through the bloodline path etc. So, if so many people fit the 'model' example, why does the lifetime trust & Will need to be expensive for the 'standard' core group of families that fit the 'norm'. Why isn't there a standard common version of auto generated trust & Will that you simply change the names on for £50, with a much higher fee for variations that take days rather than 10 mins?
Standard does not work as every family is different and also our estate planning is aligned for people with higher wealth than average and has to be bespoke to them
Im due to marry my partner who owns his house outright, we have a daughter, its both our wishes that the house is left to her should anything happen to my partner after we marry, I'm willing to sign a prenuptial contract but thats going to cost thousands, am i right in thinking he can make a trust will for her to inherent the house n not leave me the house, but also states in the will im to stay in the property with her and look after it for her until she of age, some feed back would be great thanks
can you set up a lifetime trust for anyone? for example I have no children, but want to leave parts of my estate to my brother and my nephew. Can I set them up for those, or does it have to be children and grandchildren?
Hi and thanks for your videos. My sister and I inherited and sold our mother's house in Cyprus via a Cypriot solicitor and paid all taxes there. Do we need to declare it to the tax office? It is below the 325 threshold for each of us. Thanks.
Say if you only have 2 properties and want to partner with a sibling? Is it best to stay as an LLP
Hi, can you use the residence nil rate band every 7 years even though you don't have a trust?