Inheritance Tax: Gifting

A Gift Plan is a tax-efficient way of creating an investment fund that is ring-fenced for your beneficiaries while potentially reducing the value of your estate for Inheritance Tax (IHT) purposes.

The first question to ask yourself is do you know who you want your wealth to be passed on to, either in your lifetime or following your death? Even if you don't, but still want to take action to reduce your IHT liabilities, our discretionary Gift Plan may be able to help.

None of the funds in a discretionary trust form any part of any beneficiary’s estate while the funds remain in Trust. This means that no tax obligations are created for the beneficiaries and they have no right of access to the funds. Instead, the trustees control who gets what and when.

Because the plan is so flexible, it can be used for any number of reasons, from maximising use of your Inheritance Tax (IHT) exemptions, or to creating a fund to pay for the costs of grandchildren's education.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority.

Subject to eligibility and HMRC ratification.

Please note that this is not a recommendation, if this is of interest please take advice to see whether it would be suitable for you.