Setting up investments under trust or investments that can attract Business Relief (BR) and gifting, are three possible considerations when providing advice to clients on how to properly plan their estate to protect assets and mitigate inheritance tax (IHT).
Although a client who lacks mental capacity cannot settle a trust, their attorneys or deputy can, on behalf of the client, make larger investments attracting BR and/or gifts (including to themselves) but only if it can be unequivocally demonstrated that in doing so so, the client’s (donor’s or P’s) own lifelong financial position is not jeopardised and their later life needs are fully met.
For larger gifts that are not permitted under s.12 of the Mental Capacity Act 2005, a Court order will be required and, in the case of BR investments, is recommended, before implementation.
This article by Mary Rimmer TEP of Brachers LLP clearly explains gifting on behalf of a client who may have lost mental capacity.
In my view, estate planning for clients who lack mental capacity, needing to ensure their later life care needs are fully funded and guaranteed, is an area of advice that needs specialist knowledge and a collaborative approach between the financial planner/later life adviser, and a lawyer.
#FinancialPlanning #IHT #LaterLifeAdvice
Society of Later Life Advisers
The Association of Lifetime Lawyers
STEP – Advising Families Across Generations
Navigating the rules around gifting as an attorney or deputy can be complex and full of potential pitfalls. Whether it’s a charitable donation or a gift to family, understanding what’s allowed is crucial to avoid legal consequences.
In our latest blog, Mary Rimmer TEP, Accredited Lifetime Lawyer and Partner at Brachers LLP, looks at:
- What a gift is
- What gifts can be made
- The rules for attorneys and deputies
- De minimis exceptions
- The consequences of unauthorised gifts
Read it here: https://lnkd.in/eJ5pbmi9
🌟 It’s inspiring to see USI team members making a difference in Las Vegas by supporting the Assistance League. Keep up the great work! 💪✨ #GivingBack #USIONEAdvantage