Tax & Trusts

Inland Revenue figures show that the number of people affected by IHT has increased by 45% in the last 5 years The average IHT bill is now at least £83,000 25,000 estates paid £2.4 billion inheritance tax during 2002 (Source: Inland Revenue 2003) We could save the client approximately £105,200 in tax almost immediately Two families are falling into the inheritance tax trap every minute The object of Powell Davies Solicitors is to do strategic estate planning, to maximize the client’s tax capacity and therefore minimize the tax payable to the Inland Revenue, which in turn will:- 1. Ensure that property passes to the intended beneficiaries; 2. Preserve the specific assets for future generations; and 3. Preserve general wealth The key is to pass on the wealth as efficiently as possible This can be achieved through the making of gifts, settling assets during your lifetime through the use of trusts, and by making an appropriate Will.

Estate Planning & Trusts – A Summary. We would like to introduce you to our specialist estate planning department which specialises in providing invaluable tax planning and trusts advice. There are many reasons why lifetime planning is so important, for example:- Would you like us to considerably reduce your inheritance tax and capital gains tax? Do you realise that we could save you up to £105,000 in inheritance tax bills? Without the proper professional guidance, your money and estate might end up in the wrong hands or be lost completely Buying property abroad? We could probably reduce your tax bill by at least £50,000? Want to avoid large capital gains tax? We can help to reduce your liability Life Insurance? We can advise on the most appropriate type of vehicle to put the policy into, whilst making it beneficial to your family as well and keeping it out of IHT issues. Do you have jointly owned property? We can enable you to safeguard and protect it for the future Tenants in common or joint tenants? The difference between the two can have huge consequences, so we can ensure you are holding the property in the most appropriate way Worried about health or capacity in the future? Powers of attorney can mean that your well being and assets are looked after Want to provide for family or friends? We can set up tax efficient methods of passing on property and assets. Trusts Provided they are set up correctly, avoiding the many potential legal pitfalls, trusts can be one of the most effective weapons in the armoury. A core component of estate planning, there are a variety of different trusts from joint and mutual wills, contingency trusts, discretionary trusts, inheritance tax mitigation under the nil rate band, deeds of variation, pension death in service benefits, personal pension plans, severance of joint tenancies, revert to settler trusts, interest in possession trusts and equalisation of estate. To the uninitiated the choice can seem confusing and endless. But to an expert, such as Powell Davies, it represents a world of opportunity which we can offer to clients. Trusts are a flexible and versatile way of transferring your property and assets, which will then be managed and controlled for the benefit of another. These can be particularly useful in the transferring of assets to young children or grand children. Trusts can be created in your lifetime or through provisions in your will. The trust document will set out what property/assets are being given away, to whom, who will manage it (the trustees, of which you can be one if a lifetime trust) and the rules for looking after the assets, in addition to this the Trust can be drafted in a way so that you can do whatever you wish with the property during your lifetime i.e. Sell it, Re-mortgage it, Live in it etc. By placing the assets or property in a trust you cease to be the legal owner and the benefit is passed to the beneficiaries. This means that you will cease to be taxable for these assets. The opportunities are endless and need to be explored in order to realise the huge benefits that trusts and lifetime estate planning can offer to each and every individual.

Registered Office: Market Chambers, 27 Eastgate, Aberystwyth, Ceredigion SY23 2AR Powell Davies Solicitors is a trading name of Powell Davies Solicitors Limited who is registered in England & Wales with Company Registration No: 5288033 VAT Registration No: 869 3723 76 Powell Davies Solicitors are Regulated by Solicitors Regulation Authority Privacy Policy. Design by Mark Ashton @ GBL Designs.