BR Guide Second Edition

41 BR INVESTMENT OPTIONS BR INVESTMENT OPTIONS 40 2 YR BR QUALIFYING PERIOD 3 YR REPLACEMENT WINDOW BR Qualification and replacement business property example timeline CLIENT & ADVISER MEETING Client funds transferred to relevant investment manager Manager invests funds Shares held for 2 years potentially benefit from falling outside of the charge to IHT 2 YEARS Manager sells non- qualifying shares Manager notes change in main activity of main company which makes underlying shares non- BR qualifying Client dies Manager buys replacement shares with entire funds from non-qualifying share proceeds MANAGER MONITORS UNDERLYING ASSETS TO ENSURE BR QUALIFICATION 3 YEARS HMRC assesses estate and grants BR Types of BR Services and the types of clients they might attract Attorney is able to invest a significant cash sum in a BR service without requesting approval from the Court of Protection. Sell the business and invest proceeds into BR qualifying assets, taking advantage of replacement property rules for immediate BR qualification. Corporate BR service that keeps the funds accessible to the company but ensures BR qualification. Wealthy lady in early 80s with active LPA Always very clear about wanting some IHT mitigation so her grandchildren get as much of her wealth as possible 1. Business owner looking to retire Concerns over the business losing value as he ages but wants to retain IHT relief on the company and safeguard his children’s inheritance 2. Company with excess cash No plans to use it currently, but concerns over future cashflow needs 3.