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Old November 19th 04, 06:06 AM posted to uk.finance
TA TA is offline
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My parents have had a visit from a guy from a company called Weston (IFA)
after phoning a number in the Daily Mirror re Inheritance Tax Planning.

He has suggested they don't put 250K in a bond (they put it in a few days
ago) and stop the bond and make it available in a current account. He will
then pay them a visit re setting up a trust to avoid IHT.

Surely they can see a solicitor and set up a trust without moving their
money to somewhere recommended by an IFA?



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Old November 19th 04, 07:44 AM posted to uk.finance
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Default IHT Planning


TA wrote in message -service-com...
My parents have had a visit from a guy from a company called Weston (IFA)
after phoning a number in the Daily Mirror re Inheritance Tax Planning.

He has suggested they don't put 250K in a bond (they put it in a few days
ago) and stop the bond and make it available in a current account. He will
then pay them a visit re setting up a trust to avoid IHT.

Surely they can see a solicitor and set up a trust without moving their
money to somewhere recommended by an IFA?

Solicitors typically charge 10K+ to set up a trust, whereas the big
insurance companies do it for free, and recoup the money in fees. The latter
is likely to be more robust when under attack from the chancellor.


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Old November 19th 04, 10:12 AM posted to uk.finance
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Default IHT Planning

"stuart noble" wrote:

TA wrote in message -service-com...
My parents have had a visit from a guy from a company called Weston (IFA)
after phoning a number in the Daily Mirror re Inheritance Tax Planning.


*shudder* newspapers do deals like this all the time. It's a
commercial thing and no greater credibility should be given to the IFA
because of it.

As with anything, it's worth them/you doing some background reading -

Here's an overview of different trusts
<URL:http://www.sli.co.im/trust/pages/step1_definition.htm

Here's an overview of advisors
<URL:http://whatinvestment.money.msn.co.uk/msnwi101.htm

The "Which?" Guide to Giving and Inheriting
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/0852029462

The "Which?" Guide to Wills and Probate
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/0852029713

Good suggestion here
<URL:http://groups.google.co.uk/groups?hl=en&lr=&threadm=YL%2BfTkAd9ojBFwE1%40john boyle1.demon.co.uk&rnum=1&prev=/groups%3Fhl%3Den%26lr%3D%26selm%3DYL%252BfTkAd9ojB FwE1%2540johnboyle1.demon.co.uk

<URL:http://www.step.org/
<URL:http://www.solicitor-ifa.co.uk
<URL:http://www.asim.org.uk/

They need to be aware of
<URL:http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=126381&d=786&h=784&f=785

Look for IFAs with the AFPC G10 Taxation & Trusts Qualification.

He has suggested they don't put 250K in a bond (they put it in a few days
ago) and stop the bond and make it available in a current account. He will
then pay them a visit re setting up a trust to avoid IHT.


Be aware that trusts are not a magic solution to IHT. Whether the
assets are inside or outside of a trust, I believe the PET rule
(gifter must survive 7 years for zero rating) still applies.

Surely they can see a solicitor and set up a trust without moving their
money to somewhere recommended by an IFA?

Solicitors typically charge 10K+ to set up a trust,


I'm amazed by that figure, given that the majority of such trusts are
relatively simple to set up. Where did that figure come from ?

whereas the big
insurance companies do it for free, and recoup the money in fees.


Just make sure they don't recoup too much !

The latter
is likely to be more robust when under attack from the chancellor.


Why ?

Daytona
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Old November 19th 04, 02:29 PM posted to uk.finance
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Posts: 510
Default IHT Planning

Daytona wrote:

He has suggested they don't put 250K in a bond (they put it in a few days
ago) and stop the bond and make it available in a current account. He will
then pay them a visit re setting up a trust to avoid IHT.


Be aware that trusts are not a magic solution to IHT. Whether the
assets are inside or outside of a trust, I believe the PET rule
(gifter must survive 7 years for zero rating) still applies.


and of course the first ~260K of each persons estate is free of IHT
anyway.
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Old November 19th 04, 03:35 PM posted to uk.finance
TA TA is offline
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Default IHT Planning


"Daytona" wrote in message
...
"stuart noble" wrote:

TA wrote in message
-service-com...
My parents have had a visit from a guy from a company called Weston (IFA)
after phoning a number in the Daily Mirror re Inheritance Tax Planning.


*shudder* newspapers do deals like this all the time. It's a
commercial thing and no greater credibility should be given to the IFA
because of it.

As with anything, it's worth them/you doing some background reading -

Here's an overview of different trusts
<URL:http://www.sli.co.im/trust/pages/step1_definition.htm

Here's an overview of advisors
<URL:http://whatinvestment.money.msn.co.uk/msnwi101.htm

The "Which?" Guide to Giving and Inheriting
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/0852029462

The "Which?" Guide to Wills and Probate
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/0852029713

Good suggestion here
<URL:http://groups.google.co.uk/groups?hl=en&lr=&threadm=YL%2BfTkAd9ojBFwE1%40john boyle1.demon.co.uk&rnum=1&prev=/groups%3Fhl%3Den%26lr%3D%26selm%3DYL%252BfTkAd9ojB FwE1%2540johnboyle1.demon.co.uk

<URL:http://www.step.org/
<URL:http://www.solicitor-ifa.co.uk
<URL:http://www.asim.org.uk/

They need to be aware of
<URL:http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=126381&d=786&h=784&f=785

Look for IFAs with the AFPC G10 Taxation & Trusts Qualification.

He has suggested they don't put 250K in a bond (they put it in a few days
ago) and stop the bond and make it available in a current account. He
will
then pay them a visit re setting up a trust to avoid IHT.


Be aware that trusts are not a magic solution to IHT. Whether the
assets are inside or outside of a trust, I believe the PET rule
(gifter must survive 7 years for zero rating) still applies.

Surely they can see a solicitor and set up a trust without moving their
money to somewhere recommended by an IFA?

Solicitors typically charge 10K+ to set up a trust,


I'm amazed by that figure, given that the majority of such trusts are
relatively simple to set up. Where did that figure come from ?

whereas the big
insurance companies do it for free, and recoup the money in fees.


Just make sure they don't recoup too much !

The latter
is likely to be more robust when under attack from the chancellor.


Why ?

Daytona




many thanks for the background reading - will go away and do some homework




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Old November 19th 04, 06:04 PM posted to uk.finance
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First recorded activity by FinanceBanter: Jan 2004
Posts: 1,331
Default IHT Planning

In message , Daytona
writes

The latter
is likely to be more robust when under attack from the chancellor.


Why ?

These days, the Life Offices get their trusts 'pre-approved' by the CTO.
Solicitors dont.
--
John Boyle


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