The Atticus Papers

Bringing clarity to finance

Tuesday 13th July, 2021

Discounted Gift Trusts – how to gift away assets and retain an “income” from them

Many people are aware that they have an Inheritance Tax liability, but feel that they cannot afford to do anything about it, as they rely on their excess assets to provide an income to meet their expenditure requirements. They are asset rich and income poor. Unfortunately, there does not seem to be a way to gift away the assets, while retaining access to the income generated, without falling foul of the Gift with Reservation rules. However, the Discounted Gift Trust offers an option to give away the asset, while carving out a right to "income" from the assets for life. In the article below I will explain what Discounted Gift Trusts are, how they work, their advantages and disadvantages and who they might be suitable for.

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Saturday 22nd May, 2021

What is a trust and how does it work?

Trusts can be very useful in passing your estate to your loved ones and avoiding Inheritance Tax. However, for many, trusts are only used by rich people and therefore remain a mystery. The following article is a basic guide which will explain what trusts are, how they work and some of the advantages of using a trust. It will highlight how all people, rich or not, can make a huge difference for themselves and their loved ones if they use a trust correctly.

Read about what a trust is and how it works, or watch our video...

Monday 3rd May, 2021

A basic guide to avoiding Inheritance Tax (IHT) (2021/2022)

Inheritance Tax is without a doubt the most controversial and confusing of taxes, with many people unsure of whether their estate will be subject to the 40% Inheritance Tax charge or not. There are difficult concepts such as the Nil Rate Band, Residential Nil Rate Band, gifts with reservation and the IHT 7 year rule, which make it hard for anybody to navigate the complex IHT rules. Many people feel that IHT is unfair, as they have paid taxes all their lives and therefore shouldn't be taxed at death as well. Inheritance Tax for landlords with large property portfolios can be particularly difficult to manage and can leave their executor with a difficult and costly IHT problem. Their main concern is to pass their estate over to their loved ones as efficiently as possible and therefore want to know how to avoid Inheritance Tax (IHT) and reduce their IHT bill. This article will provide a step by step process to putting in place a plan that can help you to reduce your IHT bill carefully and effectively.

Read a basic guide to avoiding Inheritance Tax, or watch our video...

If you would like further information, please don’t hesitate to ask us for one of our more complete digital guides to finance.