Estate Planning Guide

Shifting portfolios towards later life Mr P, 67, divorced with two children, has a large investment portfolio of £200,000, as well as other assets that will take him significantly above his available NRB. As he is approaching later life, he has started to consider IHT. He decides to start to move the portfolio annually, £50,000 at a time into BR qualifying holdings. After two years of holding each tranche of BR qualifying shares, they become 100% exempt from IHT. Within 4 years the entire original investment portfolio has been moved. Within 6 years the entire investment portfolio is IHT exempt. The money is also exempt from tax on growth via ISA All of the money is still accessible to Mr P subject to liquidity considerations 2 years £50k new into BR £50k IHT exempt 4 years £100k new £100k IHT exempt 6 years £200k IHT exempt (£50k year 3, £50k year 4) £30k a capital preservation BR service (beginning the move towards capital preservation). invested into TIME:ADVANCE £20k a growth BR service (to continue the growth aspect of the portfolio and make use of ISA allowances for tax-free growth). invested into TIME:AIM Sarah is beginning to have concerns about IHT but still wants to target growth. Tax efficient investing and IHT mitigation Sarah is a mother of two and is considering retirement in five to seven years. Her estate is worth £700,000 most of which is in her house, but £100,000 is invested in ISAs. Sarah transfers her existing ISAs into a Business Relief qualifying investment in AIM shares, via the Puma Multi-Strategy Estate Planning Service After two years, having been fully invested in BR qualifying companies, the ISA becomes free from IHT, saving a £40,000 IHT liability Sarah is also able to retain control of her investment and benefit from the growth potential whilst retaining the benefits of an ISA wrapper - no CGT or IT. 2 years Puma Multi-Strategy Estate Planning Service Did you know? With the optional life protection, investors in the Puma Multi-Strategy Estate Planning Service can potentially protect themselves from IHT during the initial two year holding period. BR AIM SHARES ISAS £40,000 IHT free ISAS When Sarah dies, assuming no gain or loss on the original investments, her £100,000 ISA will be left to pass on to her children upon death. This scenario is for illustrative purposes only. An investment in this service can be viewed as high risk and the value may go down as well as up. Tax reliefs are not guaranteed and may be subject to change. 77 CASE STUDIES