Overview
Mr & Mrs Jones are married and have x3 grown up children. Their estate is valued at £1,700,000 (main residence £1,500,000 & savings of £200,000).
Currently, if they pass away with no planning in place there would be IHT to pay – their children would pay this on their behalf.
Taking no action
IHT due – £280,000
No protection against third parties (future partners, creditors, benefits etc), meaning Mr & Mrs Jones’ children may end up with even less if any of them are going through financial difficulty after their parents passing.
Planning in place
In this instance, putting the correct planning in place, we can reduce the estate for inheritance tax calculations and save the children that £280,000, like most inheritance planning (in particular, gifting) this takes 7 years to do.
Alongside mitigating IHT, we have also put the relevant lifetime protection in place ensuring Mr & Mrs Jones maintain control and their estate is protected against third parties.
