Inheritance Tax Solutions - Estate Control Bond
How can I protect my capital against Inheritance Tax and retain control and access to my capital and to income?
- Mr and Mrs Owen have an estate that exceeds the IHT exempt amount by £1.35m
- Their pensions and savings are sufficient for future needs
- Mr and Mrs Owen are 70, retired, with 3 adult children and 4 grandchildren
- They do not wish to make direct gifts, as wary of giving up access to income and capital
- They wish their children to inherit
- They wish to support their grandchildren
- If they do nothing their IHT bill will be £540,000 (approx. 27% of assets)
- Recommend they invest £250,000 each in separate Estate Control Bonds
Benefits from advice given
- IHT planning started by utilising part of each nil rate band
- ECB allows Trustees to make payments to settlor by way of maturing policies
- ECB allows beneficiaries to be Trustees
- Flexible trust ensures inheritance passes to children but, if appropriate, they can skip a generation
- ECB allows Trustees to advance monies to beneficiaries while settlor is still alive (e.g. grandchildren's school fees)
- Growth outside estate
- IHT saving after 7 years - £200,000
How it works
Talk to us now!
Call us on either - Colchester: 01206 838400 / Ipswich: 01473 259201 or
We will look to carry out a regular review of your circumstances, objectives, needs and portfolio performance to ensure all arrangements continue to be suitable and advise of any changes that may be appropriate.
This example is for illustrative purposes only, based on current legislation and tax allowances. Tax rules and regulations are subject to change.