TRUSTS & TAX PLANNING
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What Our Clients Say
Nigel Isaac put me very much at ease and was very thoughtful when dealing with my husband during home visitsAnonymous in relation to Nigel Isaac
I have found everyone extremely helpful and patient in explaining the processes.Ms T.
Very helpful and understanding.Client of Catherine Murton
I was very grateful to Catherine Murton for all the home visits and especially for bringing forms for me to sign in hospital whilst I was ill and her concern for my health.Grateful Client
Found very helpful and pleasant, answered all questions no matter how stupid!Client of Catherine Murton
My questions/queries were answered promptly in a way I easily understood. I noticed Pardoes whilst travelling to Yeovil by bus. It had a small, open frontage with off road parking. It looked welcoming and professional. The service was absolutely first class. The receptionists were very professional. I would have no concerns approaching Pardoes for any further help or advice. Catherine Murton is superb.Anonymous in relation to Catherine Murton
A good job well done, at a difficult time, Thank you.Ms P.
Catherine was very approachable and a pleasure to deal with.Anonymous in relation to Catherine Murton
Everything was made very straight forward. We were completely satisfied with every aspect of your service.Client of Leanne Routledge
Excellent service. Adam explained everything extremely simply and well.Mr & Mrs W.
Very satisfied with the work you did for us. Thank you.Private client
I would recommend Pardoes to someone else because they have been very helpful on a number of occasions. Staff are professional but friendly.Anonymous in relation to Leanne Routledge
Legal language is complicated but explained very clearly. Quick, efficient, clear, local, rang one day and appointment the next day!Private client
Legalities were made very easy to understand.Client of Catherine Murton
I only ever experienced a very high standard. Swift, efficient and welcoming.Client of Leanne Routledge
I walked in off the street, Leanne saw me immediately and completed in a week, very impressed. I must also say your Receptionists were excellent, very friendly.Client of Leanne Routledge
All Receptionists were very good at all times. Leanne was very quick to respond and visit home as required. Also very helpful at all times and explained everything fully and carefully.Client of Leanne Routledge
The service was excellent and would be easy to recommend.Client of Leanne Routledge
Professional, fast and courteous service, trustworthy. Solicitor exhibited personal concern and care.Mr M.
Everything you said and did removed our worries and stress. The service was exemplary. Thank you.Mr & Mrs S.
Very professional and helpful.Anonymous in relation to Leanne Routledge
We were received with patience and kindness from our solicitor.Private client
Very courteous and understanding.Client of Leanne Routledge
I was anxious about discussing my affairs. However, it became clear quickly that my anxieties were unfounded. I felt comfortable during our discussions. My problems were listened to. I was treated as an individual.Anonymous
Personal attention - professional advice given in a friendly manner.Anonymous in relation to Leanne Routledge
I was left at peace with what happened. Service is excellent. I cannot think how it could be improved.Client of Leanne Routledge
You have been a great help.Client of Leanne Routledge
Your professionalism, your ability to be reassuring throughout the deserts of radio silence from the suits and your general good humour made the whole process much less painful than it might otherwise have been. As one whose default response is a Victor Meldrew harrumph, I am very grateful.Anonymous
Excellent customer service and professionalism.Client of Leanne Routledge
Good customer service and a solicitor who listens to what you want.Ms K.
Excellent service. Adam explained everything extremely simply and well.Mr & Mrs W.
Adam was very professional and knowledgeable. He answered all my questions and followed my instructions.Ms A.
Nigel is very good at his job. He looked after me and my mother so well. 10/10. A*. Keep up the good work you do.Client of Nigel Isaac
Excellent Service!Anonymous in relation to Catherine Murton
We would both like to thank you for the guidance and support you gave to us during what was a very difficult period. It is a great relief to be able to look forward after such a long time.Mr & Mrs S.
Excellent service throughout. Everyone made me feel completely at ease.Mr D.
The advice and service I received was to a high standard and to my satisfaction.Ms A.
My needs met by friendly competent approachable people. Very happy thank you.Private client re Jacqui Hellings
A guide to Inheritance Tax Planning
Inheritance Tax is charged at 40% on all assets owned at the date of death in excess of the Nil Rate Band. The current Nil Rate Band limit is £325,000. If your Estate is worth less than this on the date of your death (or the equivalent Nil Rate Band at that time) there is no tax to pay. If your Estate is worth more, then the Nil Rate Band is taxed at 0% and the balance at 40%. However gifts made within the seven years prior to death can affect the amount of the Nil Rate Band available and are offset against it first.
Some questions which we will need to ask you and which you may wish to consider are:
- How much are my assets worth?
- How much are my spouse’s assets worth?
- How much are our joint assets worth?
There are also some simple tax planning steps which you can utilize:
Gifts of up to £3,000 in total in each year (being individual gifts in excess of £250). This is separate from the Small Gifts Exemption (see below) and the two cannot be combined to make a gift of £3,250. Unused allowance can be rolled over for a maximum of one year, but should be used as early as possible each tax year to avoid passing away without having utilized it.
Small Gifts Exemption
You can give up to £250 to any number of people in any tax year.
Gifts On Marriage
Up to £5000 from a parent to their child; up to £2,500 from a grandparent to a grandchild; up to £1,000 to anyone else.
Regular Gifts Out of Normal Income
E.g. giving excess income away on a regular basis as part of your lifestyle.
Gifts Between Spouses and Civil Partners
Always free if you are both domiciled in the UK or both domiciled outside it. Domicile is a complicated concept but for immediate purposes, it is the country in which you expect to see out your life.
Gifts To Maintain Your Family
Your spouse, civil partner, or former spouse or civil partner and your children under 18 or in full time education.
Placing Life Policies in Trust
The benefit of a Life Policy can be written in Trust for a selected person or persons, but advice should be taken before doing so from your legal and/or financial advisor.
Nominating Pension Benefits
In favour of intended beneficiaries.
In addition to the above steps, we can advise you on the suitability of your circumstances for the following:
A. Trusts – discretionary, interest in possession and accumulation & maintenance trusts.
A Discretionary Trust is one in which Trustees are appointed with an absolute discretion as to when and if a beneficiary is to receive either an income or capital payment. The Trustees also have absolute discretion over the amount paid. No beneficiary has a right to any payment, so no demands can be made, but it is an extremely flexible trust and can be used for tax planning purposes.
An Interest in Possession Trust is one where a beneficiary is given the right to the income for life or the right to occupy property, and after that person’s death the income and capital is paid to other beneficiaries.
Accumulation and Maintenance Trusts are very useful hybrid discretionary trusts for those with grandchildren who wish them to benefit from their Estate. Such trusts only work from grandparent to grandchild.
Immediate Post Death Interest Trust – similar to Accumulation and Maintenance Trust with certain beneficial tax planning rules.
B. Potentially Exempt Transfers (PET) – gifts of money or assets.
If a person survives seven years after making a gift, it will normally escape any Inheritance Tax liability. If survival is less than three years the gift is counted in full. If death occurs between three and seven years, then the amount of tax the gift could attract is reduced on a sliding scale. As any tax payable is the responsibility of the beneficiary, it is important to take advice before making potentially exempt transfers.
C. Transferable Nil Rate Bands
From the 9th October 2007 a transferable Nil Rate Band arises when one party to a marriage, or civil partnership, dies and the amount of their Estate that is chargeable to Inheritance Tax does not use up all of the Nil Rate Band they are entitled to. If this were the case, the unused part can be transferred to the surviving spouse or civil partner when they die in future. This roll-over of Nil Rate Bands can mean therefore that on second death, up to £650,000 in the current tax year is exempt from Inheritance Tax.
It is very important that full records of a first deceased’s assets are kept, as they will be relevant on second death for working out a claim for relief.
In addition to the above, where we can advise you directly, there are also investment products available which can assist in the mitigation of Inheritance Tax. Whilst we are not qualified to advise you on these ourselves, we can put you in contact with one of our panel of Financial Advisors who will be pleased to advise you in connection with matters such as life assurance, and appropriate investment products.
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