Can clients access their capital?
While traditional solutions such as gifts and trusts may work for some, a disadvantage is that clients have to give up control or access to their capital for it to qualify for IHT relief.
One of the more effective IHT solutions is Business Relief (BR) – a piece of Government legislation, offering IHT relief. BR provides clients with flexibility and capital growth, without capital falling outside of their estate.
Investing in assets that qualify for BR – such as British forestry, hotels and residential developments, or stocks on the AiM Index – will fully relieve any IHT liability after just two years, providing they are held at the time of death. In contrast, gifts and trusts require seven years before they qualify for IHT relief.