An Effective Solution to Providing an Income and Reducing Inheritance Tax

Inheritance tax planning Sheffield and Chesterfield from AFS

A case study on investment planning and inheritance tax reduction

The Client’s Story

Mr and Mrs K are in their 70s, and through a lifetime of savings they had built up a significant amount of money in savings and investments. They used this money to provide an income for themselves. Having worked hard to build up their assets, their intention was to leave as much as possible to their family.

Our Financial Advice

We advised Mr and Mrs K to reduce their estate during their lifetime, as like many others in this situation, there would be a significant charge to Inheritance Tax on their death.

Although the couple were able to give some of their assets to their family, they needed to retain a significant proportion in order to generate the income needed for living expenses.

AFS recommended and arranged an investment within a Trust. This generated a sizeable and immediate inheritance tax saving whilst continuing to allow Mr and Mrs K to draw down a regular income from their investment.