Inheritance tax avoidance
This case study demonstrates the expertise of our Wills, Trusts & Tax Planning team who have recently advised a client on deeds of variation, inheritance tax and discretionary trusts.
Post death arrangements
Post-death deeds of variation offer huge scope for tax planning.
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Overview
Practical advice on your inheritance
When someone benefits from a deceased person's estate under a will or intestacy, or as the surviving owner of a joint asset, he or she may wish to redirect the inheritance to others. There are considerable tax advantages if this type of gift is made by a qualifying deed of variation.
Advantages
A deed of variation which satisfies the relevant conditions will not trigger a tax liability for the original beneficiary. Instead, for all Inheritance Tax purposes (and in important Capital Gains Tax respects) the gift effected by the deed will be treated as if made by the deceased.
Opportunities
This statutory fiction enables tax exemptions to be claimed retrospectively and can prevent unwanted assets from entering someone's chargeable estate.
Deeds of variation also provide unique opportunities for trust creation without the usual limitations imposed by 'reservation of benefit' rules or 'pre-owned assets' income tax. So they should definitely be considered by those who wish to keep an inheritance but reduce their tax exposure.
For further information about post death arrangements and deeds of variation, please contact one of the team:
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Meet The Team
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Nicola Plant
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Partner/Head of Private Client
- 01892 701330
- nicola.plant@ts-p.co.uk
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Stuart Goodbody
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Partner/Head of Trust Management
- 01892 701293
- stuart.goodbody@ts-p.co.uk
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Christopher Walker
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Partner, Private Client
- 01892 701329
- christopher.walker@ts-p.co.uk
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Stuart Price
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Associate, Private Client
- 01892 701341
- stuart.price@ts-p.co.uk
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Mark Politz
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Partner/Head of Tax Planning
- 01892 701223
- mark.politz@ts-p.co.uk
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Una Angus
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Paralegal, Private Client
- 01892 701299
- una.angus@ts-p.co.uk
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Clare Morison
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Senior Associate, Private Client
- 01892 701362
- clare.morison@ts-p.co.uk
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Solicitor, Private Client
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Sarah Nettleship
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Associate, Private Client
- 01892 701349
- sarah.nettleship@ts-p.co.uk
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Amy Lane
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Solicitor, Private Client
- 01892 701366
- amy.lane@ts-p.co.uk
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Simon Mitchell
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Partner, Private Client
- 01892 701331
- simon.mitchell@ts-p.co.uk
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