Weaknesses Of Current IHT Areangements Flashcards
1
Q
Weaknesses of current IHT arrangements
A
- valid wills which pass everything to each other on 1st death
- will be an IHT exempt transfer
- they have an IHT liability on second death
- will lose some RNRB through tapering
- this could be mitigated through planned gift to Karen
- Davids NRB has been reduced by the £50k gift to Karen
- though two annual exemptions offset this
- money purchase schemes are outside the estate for IHT
- but no nomination forms which could delay trustees deciding who to pay the money to
- Davids LTA will be included in the estate as not in trust
- ISAs will form part of the estate as can’t be in trust
- bonds and investment trust will be in estate
- but could be placed in trust
- not making regular use of annual gift exemptions
- but planned gifts re uni education could make use of some of these
- they have the scope for effective IHT planning
- income from SIPP being added to the estate as not being spent
- and being taken from an IHT exempt asset
