Inheritance Tax liability

Background

Mrs Gray was widowed 2 years ago. Before he passed away, her husband dealt with the finances. This left her well-provided for with substantial assets of approximately £2.5 million including their home.

Problem

Unsure of her financial future now that her husband is no longer there to manage the finances, Mrs Gray wanted to ensure that she wouldn’t run out of money. Another area of concern was she didn’t want the family paying Inheritance Tax unnecessarily.

Solution

Fiducia recommended a detailed cash flow analysis to add clarity and bring peace of mind. This process illustrated that she should have enough income and capital and led to IHT planning without affecting her ability to meet projected expenses. Fiducia also advised her to take out Whole of Life Assurance. By writing life assurance under trust, it is likely that the entire proceeds of the claim could pass to the children tax-free. This