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Inheritance Tax Solutions - Estate Transfer Bond

Estate Transfer Bond

How can I protect my capital from IHT with some immediate saving plus retain control and have access to an income?

Client Circumstances

  • Mr and Mrs Giles estate exceeds the IHT free amount by £1.35m
  • Their pensions and savings are sufficient for future needs
  • Mr and Mrs Giles are wary of giving up access to income and capital
  • They would like additional income for discretionary spending
  • They wish their estate to pass equally to their two children
  • If they do nothing their IHT bill will be £540,000 (approx. 27% of assets)

Recommended Solutions

  • Recommend they invest £500,000 in a joint life Estate Transfer Bond (ETB) with 5% of policies maturing each year

Benefits from advice given

  • IHT planning started immediately but they retain access to income
  • Annually, they have access to approximately £25,000 "income" to fund discretionary spending as required
  • Monies not required can be deferred to a later date
  • "Income" can continue on first death
  • On second death ETB vests and cash proceeds paid tax efficiently to beneficiaries
  • Growth outside estate
  • Immediate IHT saving of £132,726
  • IHT saving after 7 years - £200,000

How it works

estate-transfer-bond-chart

Talk to us now!

Call us on either - Colchester: 01206 838400 / Ipswich: 01473 259201 or

Future Servicing

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.

IHT Solutions Helper Will you have to pay Inheritance Tax?

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