Trust & Estate Planning Program



  • Mr & Mrs Client Aged 74 & 77
  • Proposed sale of their home £4m
  • Purchase of new home £2m
  • Clients wanted their 3 grown up children & their grandchildren to receive the maximum benefit from the surplus sales proceeds of £2m


any ‘gifts’ of capital and/or income could be subject to Inheritance Tax in the event of death within 7 years of making the gift. Any planning typically involves giving up the right to the capital and/or income it might produce. However clients indicated they had no need to access the capital and/or income it might produce.

What we did

  1. We amalgamated a number of planning opportunities
  2. We used Potentially Exempt Transfer legislation & Normal Expenditure out of income to mitigate Inheritance Tax
  3. A Discounted gift & income trust was established which
  4. Created a fixed income stream
  5. Which in turn funded the Insured Trust


Brief Description of Strategy

The Results

  • On Death of both clients within 3 years their children will receive £3.56m (+ growth on £2m)
  • On death of Mr in Yr 5 & Mrs in Yr 7 children receive £3.82m (+ growth on £2m)
  • If clients both live for more than 7 years their children are due to receive £2m + growth (original gift) + Insured Trust £2m = £4m + growth
  • We were able to create an estate for our clients’ children & grandchildren far in excess of the initial capital sum.


This document is provided as a working example and for information purposes only, this should not be construed as financial or investment advice.