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Inheritance Tax Solutions - Gift & Loan Trust

Gift & Loan Trust

How can I save Inheritance Tax without losing access to my capital? My assets are sufficient and I do not need further growth from them.

Client Circumstances

  • Mr and Mrs McKenzie are both aged 65
  • Their estate exceeds the IHT exempt amount by £100,000
  • They have already taken some steps to mitigate IHT liability
  • Can afford to invest £100,000
  • Do not wish to gift this away at this stage
  • They wish to retain access to capital
  • Son is main beneficiary
  • If they do nothing the IHT bill on their estate will be £40,000

Recommended Solutions

  • Gift & Loan Trust for £100,000
  • Mr and Mrs McKenzie joint owners
  • Trustees – Mr and Mrs McKenzie plus Solicitor

Benefits from advice given

  • Access to original capital at any time
  • All future growth falls out of their estate
  • Access to withdrawals against original investment at any time (as regular or one-off payments)
  • If one spouse dies the remaining spouse could take 5% withdrawals of original investment to supplement income
  • Settlors could waive right to repayment of loan making the gift a Potentially Exempt Transfer for Inheritance Tax purposes
  • IHT saving after 10 Years £25,156*

* Assumes no income and 5% growth

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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