Do you act as a power of attorney for a parent or other family member?
Seize this unique opportunity for swift Inheritance Tax savings
Strict rules mean one is specifically prohibited from gifting away assets when acting under a Lasting Power of Attorney. One might therefore think that the opportunity to save inheritance tax on a loved one’s assets has been missed.
However, there are in fact certain investment vehicles which can achieve swift inheritance tax savings in a period of just two years. Interestingly, there are a number of investments available in this arena which are designed to provide steady and predictable returns, and which are not linked to the whims of the stock market.
As these vehicles do not involve any sort of gifting (the investment remains solely in the name of the investor), such investments are open to those acting under a Lasting Power of Attorney. This provides an unprecedented opportunity to mitigate inheritance tax.
A classic example where this would prove invaluable, might be where a parent’s home has been sold—perhaps due to them moving into a care home—where the attorney can invest the proceeds of sale into such investments. This can potentially save up to 40% inheritance tax in just two years.
Such a unique and substantial inheritance tax-saving opportunity should not be underestimated, not to mention the fact that such vehicles generally allow access to funds, including the ability to take regular monthly withdrawals for income – typically a much-needed benefit for a parent.
Why Seek Professional Advice?
It is crucial to note that such opportunities are only accessible through specialist financial advisors, which ensure the right strategies and investments are put in place to safeguard the financial future of your loved one – and their beneficiaries. As the Budget approaches at the end of October, the window for acting upon this strategy may be narrowing. As a long established and reputable financial advisory practice, we are well placed to assist clients in this arena. Get in touch to see how much inheritance tax you could save.
Contact: Arnold Aaron 020 7692 0884. E: arnold@arnoldaaron.co.uk
Consultancy services for accountancy and law firms also available.