BPR & APR

Although Inheritance Tax may be avoided if you bequeath business or agricultural assets or AIM-listed share portfolio to a spouse, if these are sold during his or her lifetime or if this tax relief is abolished between 1st and 2nd deaths, the proceeds become taxable. So your children or other beneficiaries may be obliged to hand over 40% of their inheritance to the government.

By gifting your business assets in your Will into either a Discretionary Trust contained in your Will or an existing pilot trust (i.e. one that we set up today), the surviving spouse and children can make use of the assets during their lifetime and are not subject to Inheritance Tax on the second person’s death.

The Discretionary Trust can be used in conjunction with a Cross Option Agreement and other tax planning Trusts in your Will (e.g. the IOU Discretionary Will Trust).